as Tom said about the carter and kinroad .... I had to do like yourself and add extra spacers between the engine and sprocket because those are the exact two brands i had to mix and match the shaft (kinroad) and rev. assy. (carter). you have to make sure that the reverse assembly is seating against the step on the shaft next to the splines when you tighten it up. if the spacers are preventing that then the gearbox halves aren't properly together. It took me a lot of trial and error shimming to find the exact spacing setup, sprocket alignment wasn't perfect and i've since remedied that by moving the engine mount. flakkes--how well greased is it and do you hear any grinding/contact rotating by hand? have you tried cable and idle adjustment to eliminate the lurch/slam into reverse?
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