I got some time to do some more trouble shooting last night and finally figured out what was going on. Since it had been a long time since i really took a hard look at the problem, I decided to forget everything i did before and start fresh. I found out that the drive gear had 3 teeth (hiding under a glop of grease) that were chewed away and that was definitely the cause of the initial problem.
I have a motor from an 81 so I went to swap that part in, and discovered there are 2 different size drive gears that came in 60s. The early one is larger and this causes the drive arm on the back side to crash into the opening in the cowl. Other than that they are interchangeable and with a little trimming i could easily make the 81 motor work. Early 60s do not have intermittent wipers like my 85 does, so I will be sourcing a new motor.
I found that removing the entire linkage set and motor to install the Wits End bushing on the drive arm is much easier than trying to install everything in place. The whole linkage and motor can be reinstalled as one piece with some careful maneuvering through the motor opening. I had to use 2 pairs of pliers to get the bushing in, one to hold a side in and another to press the opposing side into place, I couldn't have done that with all parts in place.
The most important piece I learned through this whole process is that the worm gear has adjustment to make it contact the drive gear better. I found a Mud thread talking about adjusting the worm gear on a 40 and our motors have the same adjustment! On the opposing side from the motor, there is a screw with a jam nut. If the jam nut is loosened with a 10mm wrench, then one can take a (stubby) flathead screwdriver and turn the screw in, putting more compression on the worm gear and tightening it to the worm gear. Be careful loosening the screw as there is a plastic bushing between the worm gear shaft and compression screw.
Orange is the Bushing
Blue is the Jam Nut
Pink is the screw, turn this in to tighten the gears.
I may have lost this battle, but it gave me new direction to win the war. A late model 60 motor and some 4 runner wiper arms and she should be fully operational again.