Omit the small spring that goes on the cable between the arm and the sheath. Lube the cable generously with oil, not WD40. Make sure there are no sharp bends in the cable sheath and that the cable is even with the arm where it goes through the "tower".
You did pull the arm out and grease it and the flat that pushes the rod right?
I think not having any sharp turns in the cable is most important. I am using both of my springs, it works well. The large spring is just for protecting the plastic cable sleeve from melting against the engine housing.
Thanks. I did grease the rod that disables the clutch. I may have too many curves in the cable. I am going to shorten and reroute the cable. But that is not my biggest problem now. I tried to start the engine, the motor would not start but the chain jumped jumped the rear sprocket and jammed between the sprocket and the spokes. Now the clutch will not disengage even when I manually push the clutch lever. I hope I didn't damage the engine but right now I am not optimistic.
Thanks again. As suggested, the chain was kinked on the engine gear and was easily fixed. Now I just have to find out why it wouldn't start. I had replaced the spark plug wire. I will check that first.
Check for spark first by removing the plug and clipping it into the socket, have a helper turn the rear wheel for you. If you have spark then gas on-push the tickler for 1 second, use full choke at first, then gradually decrease it as you are pedaling.
Got it running!!!
Problem was operator error. Misadjusted carburetor and wrong choke setting.
I readjusted the chain but it came off again when I tried to start from a stopped position. I will keep playing with adjusting the chain.
The clutch is much much better after shortening and rerouting the cable and removing the second smaller spring.
With a 44 tooth rear sprocket on a 26" bike, my top speed was around 15 to 20 mph (estimated). Not anywhere near 30 mph. And quite a lot of vibration at the top end. Is this normal for a new engine? I have read that after the break-in and reducing the oil mixture that it gets better.
Lots of noise but much of it chain related.
But bottom line is - It's fun and I can't wait to ride it again. What a rush.