the second diagram didn't post but I have another diagram that shows two of the spacers that go between gear 1 and two and fit into the slots on the freewheel.
Daniel M.-Good news, I fixed mine tonight-thanks to all that helped. My problem sounds exactly like what you described original, I used some thin shims from a vespa wheel and was able to play with the shimming on the clutch bell until it functioned properly. Now my motor can spin separate from the drive gear and rear wheel until my clutch grabs and I can roll my bike backwards like it should. sort of wonder if using air tools if you can over tighten the nut that holds the clutch side on too? Anyway get some shims and play with it until it does what it should.