Stalls when I put it in gear.

I don't know if that is the problem but it's easy enough to replace the missing ball and find out. These clutches are touchy to adjust even when you have all the parts.
 
Yes, that's how you set the worm screw, but as WER said, loosen the adjuster up at the hand lever first. Loosen it all the way, putting as much play in the cable as possible. Then set the worm screw adjustment, and then return to the lever to finish. You should be able to eliminate most of the slack with the worm screw. The adjuster up at the hand lever is then used to get any little bit that might be left.
 
Well, I would replace that missing ball first. If that doesn't help, then I'd tear into the clutch again and check the spacer washer positions. But, before tearing it down, with the right cover off, I would pull the hand lever and observe the clutch pack to see if the plates are moving, if the pressure plate moves out allowing the other plates to release.

You said you obviously had to replace your clutch because it sat for 5 years. I'm not sure why you thought that. I still have the original 35+ year old plates in mine and they work just fine. Most I've run across work just fine unless they're worn too thin. That's about the only reason I would replace any. But, something else has occurred to me. How many friction clutch plates did you put in? The clutch pack design changed around 1980. The new design uses one less friction plate than the earlier unit (6 instead of 7). If you crammed 7 friction plates in your later unit, that could explain why it won't release.
 
I put 6 plates in. I just installed the ball bearing and I can't get the cover to go all the way back on now because it's too much. I dont get it??? Should I be able to push the 2 piece rod at all cause I can't move it. I pulled the one out on the stator side and the ball bearing is in there too and they look fine, no metal shavings or anything.
 
Here is a before and after when the clutch is pulled. I tried uploading video but it won't let me. Any suggestions?
 

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When you put the missing ball back in, you'll need to back the worm adjuster screw off 5/16" to provide room for it. You won't be able to push the push rod in by hand, the clutch springs are too strong.

I really can't tell any thing from your clutch pack pics. The pressure plate should move out when you pull in the lever at the handlebar, but it doesn't move much, only about 2mm at most. You should be able to see it moving though.
 
I can see it moving. When I put the ball bearing in, I have to have the whole screw out of the worm drive for the case to fit. I bought some replacement Allen head bolts for the clutch plate to replace the factory Phillips heads. I bought them online and they have a shoulder that the Allen head goes into. Could it be that the shoulders are too long and not allowing the clutch to travel far enough? Now obviously the bolts in this picture aren't torqued down yet. Just took picture of bolts before adding the clutch plates.
 

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I would pull the pushrods out and make sure the missing ball hasn't been stuck in there between some of the rods. There should be a ball between each pair of rods but maybe you've got 2 in one spot? It does sound like your total pushrod "stack" (balls and rods) is too long now.
 
Just the front plate, but you may see all the plates slide out a little too. The two baskets should be held in tight by the big center mounting nut .....

LateHub.jpg
 
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