Okay so I have re-installed everything and wound the recoil again. The knot is now tucked in neatly to the recoil but It is still jamming up. When I loosen the bolts that hold it in place it snaps back fast. Here is a picture, do I have the black think on top lined up correctly?
OK, am looking at this picture closely, and it almost looks as if the white plastic rope pulley is pushed up slightly off the lower reatainer…This could be jamming the pulley. The question is why….Again, I will ask about the little plastic bushing. Did you have that lower spring retainer piece off? Perhaps it is in upside down forcing the pulley upwards, just a guess, don’t know if this is even possible. Perhaps the rewind spring is not properly oriented in the lower retainer, but I don’t see how this could happen unless you had it apart. Perhaps the spring is damaged in such a way to force the white pulley upwards, but this seems doubtful…