ok, called jim (caught him in the shower, oops, sorry) Thanks for calling me back! ok, here's the deal...you were right, once the motor is going, that arm returns to its fully disengaged position (i got it running, woohoo!), but the catch is the start. if i pull the clutch in before i start, i have to manaully move it to fully disengaged, seems the return spring isn't strong enough.
It's cooling down outside right now, I'm going to check all the connections and take it for another spin soon. will post up full pictures for everyone to DROOL over!