Hi scoffey86, this seems to be just an adjustment issue; as you move the cutter clutch lever to the disengage position, the actuating fork presses on the black plastic thrust pad, which in turn pushes the clutch cone (the inner part of the assembly) inward to disengage....it doesn't move inward much, to do its job....
To adjust this, you need to undo the lock-nut and wind the screw (attached to the actuating fork) inward and check to see if the clutch cone is moving inward and then rock the clutch backwards and forwards to confirm it is disengaged.
The trick is now to
engage the clutch and make sure it is fully engaged....if it is, lock up the lock-nut ans re-test to see all is well.
Please let us know how you get on.
