I am curious, if the Bendix is sticking or stuck would that make it impossible to use the recoil starter. Since the Recoil is bolted back on the spring works fine but it still will not budge unless the recoil is off. Once I take the recoil off I can turn the crank by hand but the little gear on the side which I believe is the bendix is just sitting there. on the bottom left.

 

Well try this, pull it over and see if they bendix stays engaged or not, chances are it will release....if it wont take your recoil cover off and remove it.

 

are you puttin the loose end of the bendix back into the bushing on the recoil housing? maybe its not getting in there and causing things to bind up.
i would also say just remove the bendix if its stuck open so it doesnt end up turning the starter motor continuously.