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Steve,
I don't have a answer to what your problem is but I did have my transaxle on and off my car about a dozen times while installing my conversion. The last 1/2" requires some wiggling while pushing toward engine at the same time...... you might want to enlist a friend to help.
My trans. and engine were out of car and made this easier than your setup. On my first couple of attempts I gave thought to using the bolts/nuts to draw up the last 1/2" but knew better. The wiggling while pushing came to mind and worked the other dozen or so times I had to do this.
I also think your clutch is centered correctly if you are able to get it in as far as you describe.
My problem was due to the wrong number of washers installed behind clutch fork pivot ball, where too many washers caused the throw out bearing to engage pressure plate at all times.
If your going to pull the gearbox out, I'd check the T/O bearing for proper installation. You've either got problems with the front end (clutch/pressure plate) or the back (T/O bearing). Removal of throwout bearing/pivot fork would be one way to eliminate as a source of your problems.
If you can install the gearbox properly with T/O bearing remove, why not install your starter and get the engine spinning with plugs removed. "Marine oil in cylinders" might be causing some of your binding as it tries to remove itself from jugs......depending on how much was used.
John
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'73 914
(Renegade V8 conversion)
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