Garelli 2spd problems: stuck in second gear/starter clutch stuck.

Chris HnRz /
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I am helping my buddy figure out his VIP 2 speed and we can't get it to disengage the clutch entirely and first gear doesn't work. It stays on second and runs well once it gets up to speed. Does 35 pretty easily bone stock. Anybody know some good basic shit to check on one of these? We have two extra sets of little rubber nibs so once we figure out why it's stuck in 2nd we can get everything back to running stock awesomeness. We have looked at the manual and everything is assembled correctly as per the diagram.

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