So as soon as I fasten the clutch housing (in my hand in the pic), the 1st speed gear won't spin and therefore the sprocket (& rear wheel) won't spin backwards. This doesn't seem right to me, and makes me think a washer was placed out of order. I've been following the manuals, so I'm not quite sure what it can be.
The washer I'm suspect of is under the 1st gear; so the order stacked on top of each other is as follows....
-thick washer (see pics)
-wide thinner washer (see pics)
- first gear (with the free wheel in the center)