I’ll take a look today when I get home. That gear picture, is the transmission.this picture is the clutch gear, only one I have . I am still waiting on clutch parts. I am pretty sure that spacer with the two needle bearings looks like the picture you have. I think I am sure when I put the basket on , there was clearance. After I pulled the right case down with the crank puller, installed the transmission gears the top one looked awful close to the second gear on the other shaft, so I took a picture of it.