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Thanks guys, one question though:

Can the nylon insert be removed? Could it just be pried out with a small screwdriver? I would only need to remove it in case I need to adjust the nut after I put the transmission back into the machine. It didn't need adjusting before but I don't know if it will when I put it back in. I think there needs to be 1/16" inch clearance between the clutch plate and the basket drive pulley, so I think adjusting this nut would do that. This is my first rebuild of a gearcase & basket drive so that is why I ask. The picture I posted is before I did the rebuild.

Thanks!!
 
The reason they use Nylon is that it is conformable and allows adjustment. You can move the nut around and even take it off if needed. There will still be resistance when you reinstall it. You don't have to do anything special, other then apply a bit more torque to move the nut.

 
 

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