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Today I tried seating the lower pinion bearing a little better. I thought maybe I got a millimeter for my efforts, but no dice. Gave necks’ suggestion a go. That also failed to get me anywhere.
I dug up the old pinion ( I don’t throw anything away, just ask my wife) and compared it to the new one. They appear to be identical. I can take them to work with me tonight and take some measurements. Fortunately for me I work as a quality inspector and have access to many measuring tools. I replaced the old pinion as just about everything in the old gear case was ruined from sitting for too many years with water in it. I think all I was able to salvage was the shift lever and pin. At one time I had sold this boat and motor to an acquaintance who promised me they were going to take care of it. After painfully watching it sit outside neglected for a few years, I offered to buy it back.
Going forward, if I find no difference in the pinions, then I should probably remove the pinion bearing, make sure there isn’t any debris or anything keeping it from fully seating, and reinstall it. Just hope this doesn’t involve destroying any parts I’ve already replaced. If that still doesn’t work, what are the odds of making a gasket that can take up the space and get everything to turn easily again?