Okay Gang, UPDATE....UPDATEI'm gonna take some pictures tomorrow, but the problem has been solved. It has taken some time, but it was a modification that had to be made to the bellhousing. The SR bellhousing needed to be ground down on the inside where the 1/2nd shift rod travels. Note the outside of the casting, not the area where the rod travels. Apparently the 240 gear set has bigger gears (possibly the 1st gear ?). If you look at the 240 bellhousing where the 1/2 shift rod travels into the bellhousing, you will notice a corner missing (like it was shaved down). When I tightened the SR bellhousing the actual gears were making contact as I tightened it down and bound up the transmission. Ground it down... and POOF, no more binding. Spins and shifts like butter. I think i must have popped off and resealed that housing like 5 times...aaarrrghhh. Anyhow I will post some pics of the 240 bellhousing where the difference is and hopefully help someone else to avoid this headache. Thanks for the input everyone gave. It kept me going and double checking everything. Perserverance paid off....and saved me some money. On a side note - when Hijacker said lining up the shift rods takes a few tries... it does. What a PITA ! Thanks again gang.