Ok, cleaned all the old grease off and put everything back together. Shifting is lots better than it was before, but still not without issues. Now, when I get a failed shift I can tap the foot shifter back to the proper retracted state (I hear a little click) and it works just fine. I am inclined to think it is part #7 on the diagram that @papa hogg scoot suggested. How does one get to that part? I am guessing it requires opening the crank case If so, is there anything else that I can try first?

Thomas

 

Have to remove front case cover First may try clutch adjment first Also Honda had recall on the shift drum breaking off in the rear for reverse...Also photo number 11 is return spring for shift shaft

 

I've had the "doesn't return after shifting" problem on a 300 and a couple of 420 Autos. In all cases it was item 12 that had broken off, leaving spring 11 with nothing to push against. However the lever didn't return at all with this problem. Double check the motor is free to spin (it should feel slightly lumpy as you turn the shaft by hand) and, as papa hog scoot wrote, adjust the clutch, but if that doesn't work, the only way to find the problem is to remove the clutch housing and take a look at the mechanism.