Hi Dennis
Have you separated the 3 shafts? You should look for wear on the fork faces and wear in the groove of the 1st/2nd dogged wheel. I had to replace a dogged wheel on my gearbox and weld repair and machine the corresponding fork because of excessive galling caused by poor alignment and rubbing of the fork and dogged wheel.
Also ensure the fork bodies slide smoothly along the gear selector shaft and there is no binding of the pins in the fork body grooves. If you feel any binding you can do some filing or very light blending to remove any raised areas that may be causing hang up of the pins in the grooves. Look for wear on the pins and grooves also. If you see any issues you may need to drive out the pins on the gear selector shaft to remove the forks.
Check that the dogs on the dogged wheel engage nicely with those on the face of the 2nd gear. The dogged wheel should also slide freely on the shaft.
See Service Sheet 608. I think it says the assembly should be in 4th gear when you stuff the 3 assembled shafts into the gearbox housing.In 4th gear the 1st/2nd shifter fork and dogged wheel should be mid way between the 1st and 2nd gear. If not you may need to add or remove a shim.
Push the inner cover into place including the gasket and install a couple of bolts. Try shifting gears while spinning the rear wheel or output sprocket. Everything should turn freely with no binding or resistance in all gears and in neutral. Spin the main shaft in neutral to feel for binding. If you feel binding, you may have a bent fork or slight misalignment. I had slight binding on my repaired fork which I corrected by light blending of the fork face. This took about 6 iterations of removing and reinstalling the gear train/shifter assembly.
Check that the shifter shaft doesn't have excessive axial movement. I don't know what the limit is but my gearbox had 0.015 in. axial movement and it works fine.
My gearbox also had a chipped tooth on the ratchet lever which I believe caused the ratchet mechanism to skew and jam. I had the tooth built up with weld and refiled the profile.
After you install the outer cover, ensure you install a c clip on the gear selector splined shaft. Otherwise you can have ratchet misalignment.
These are the points I can remember when working on the gearbox in 2018. I hope it helps.
Let us know how you get along.
Jim