H42 Tranny 2nd 3rd gear thrust clearance tightening (1 Viewer)

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Beautiful BC
So as per title my third gear clearance is beyond the limit, I believe the splined hub on the end of the transmission output shaft (side that mates with input shaft via needle roller bearings) is shifting behind the snap ring.
Would love to confirm that installing a larger snap ring will tighten this up. FSM is not super clear but I think this makes sense.

Exact details, pics etc are on my build thread starting at post #133 Finally Bought my first CRUISER!
 
Although I have zero experience reassembling the transmission, and some experience taking it apart, I have a lot of experience figuring out WTH the FSM is trying to say...:)

In the FSM (see below), step 5 is prompting you to choose a snap ring size that will allow minimal axial play. But of course it fails to mention axial play between what?

Then step 6 is telling you to check the trust clearance between 2nd & 3rd gear.

The way I'm interpreting these instructions is that the snap ring size you choose in step 5 influences the thrust clearance in step 6.

There is no other information regarding a remedy for incorrect thrust clearance for those gears except the selection of the correct snap ring. So my guess is that your assumption is correct:
The correctly sized snap ring will set the correct thrust tolerance between 2nd & 3rd gear.

That's how I'm reading it anyway.

You could easily test it by installing 2 different sized snap rings and see if it influences the thrust clearance between those gears.

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