What the heck is that squeaking sound?

1. Some clutch/gear noise is normal, if you're talking about a Chinese 2 stroke engine.

2. Remove the clutch actuator cover and look for a small hole, about 3/32" in diameter. There should be a steel pin in that hole but it's not uncommon for them to fall out alllowing the clutch actuator arm to lift out of the cover. You can make a new one from a small nail cut to length or any steel pin material that will fit the hole. Most engine makers secure the pin in the hole with a small dab of an epoxy material over the end of the pin.

3. We suggest the wiring connections be soldered and protected with heat shrink tubing as opposed to relying on the kit supplioed plug-in connectors. They are notorious for bad connections and vibrating loose.

Hope this helps and answers your questions.
Tom

Wasp,
Are you absolutely positive the pin is still there? The design allows for a little play but not enough for the arm to slide completely out of the cover unless it is rotated about 90degrees from the position it normally is in when the cover is installed.
Of course there's always the possibility of a manufacturing error that could account for your problem. We can never rule that out.
Maybe a photo would tell us more.
Tom