Thanks, Disston. It is a kickstart, though I'm not sure on the year. I'll have to check for a serial number.
And yes, the X is on the shaft. I haven't spotted any on the gears. So if it's on the shaft, then its not the revised gear angle? Wow, confusing.
I tried heating with a torch, although with a page full of warnings against it in Clymer's I just went for *light* heat. I'll give it a little more and see if that does the trick.
The bearings aren't really loose at all, and I did mark all the shims, so all in all, the gearbox might be fine. There was a little oil seal piece sitting on one of the bearings that I misplaced thought, so hopefully that's not an issue.
The grinding was louder when driving than at idle, though i only took it a few feet for fear of decimating some internals.
Thanks for your help, I'll have to get into the clutch.