At this point, decided it was time to look into fixing my identical 650g parts bike that I had previously tried fixing (oil leaks from everywhere). Long story short; got it running so that I could at least commute to work.
This last weekend, I decided to tear into transmission to see what had happened to it. Having never pulled motor or split cases, I figured this would be a good learning experience. Motor came out fine and had no difficulty in getting cases apart.
Upon inspection of transmission, found that the secondary drive bevel gear would spin on shaft independently. This is the gear that connects the transmission gears to the secondary driven bevel gear that is attached to propeller shaft. Sorry for confusion, but that is the best I can describe it.
Of course to disassemble, the service manual calls for a special tool. After manufacturing a custom tool (pvc pipe and large fender washer coupled with 6mm bolt) I was able to separate secondary bevel gear from shaft. Here I made a rather startling discovery--this part was supposedly one piece and mine was two!!
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