I just got done tearing the gearbox apart and putting it back together. It made the aforementioned grinding noises again while I was pushing it around in the garage before I started working on it. Once I had it apart, the clutch worked just fine. I was able to easily spin it by hand, and it didn't show any signs of abnormal wear. I cleaned out most of the original grease (probably had too much in it from the factory), put a small amount of wheel-bearing grease on the gear teeth and bearings, and put it back together again. This time, the "push test" worked OK...no clutch dragging. A quick test ride around the parking lot turned up no problems.
Back to my original question... if its a sheared key or something like that will i need to order a special part for it or will i be able to get one locally somewhere?
If the woodruff key in your gearbox is damaged or missing, I think you can get a replacement "off the shelf" if it's a standard size.
This site has a PDF with dimensions for standard-sized woodruff keys.
This site I stumbled across sells them for things like ATVs and snowblowers; I doubt they're the only ones. If there's someone near you who sells go-karts, minibikes, and things like that, they might be able to set you up with something that'll work.
Whether it's a standard size or not is the big question. If my gearbox was still apart, it'd be no big deal to get some rough measurements off of it (don't know how good they'd be, though, as I don't have a micrometer).
Update: Looks like what you're really looking for is a feather key, not a woodruff key...my bad. Standard dimensions for those are
here, near as I can tell. Those look more like they'd be the correct shape than a woodruff key. It's a bit of a p*sser that the kit came with a somewhat complete manual for the engine, but bugger-all for the gearbox.