[Goat Blower]

You have to change those arms from inside the tranny, they don't just pop off.

I agree it's the clutch. Take the extended rod off, adjust the clutch pedal about in the middle, they pull the top inspection rubber cover off the tranny and inspect the clutch disengagement while someone else pushes in the clutch. You should be able to see if you're close and adjust from there. Did ou have the flywheel step machined properly?