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Two things; As John points out, the spacer is needed for the short shifter. I have the factory short shifter in my 85 and the spacer plate is installed. The second thing, you might need to do some fore/aft adjustment of the shift rod at the shift coupler. It doesn't appear you're getting full forward throw. As a side note, a nice addition to the short shifter is the Seine gate shift kit. It adds tabs for the 1/2 shift plane and is spring loaded to the 3/4 plane.
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Nick
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