Can't remember which washer got deleted but I put the hi/lo gears and shifter back in yesterday and there are lots of washers. Two on Hi/lo/reverse selector shaft that sticks out of case. Two loose on selector drum (more if you take the circlips off). One outboard of the gear that always drops off, one inboard of it between it and selector dog. I think there is one on the end of the other gear shaft too, but wouldn't swear to it. None on either starter gear shafts.

 

I put the hi/lo gearbox back together yesterday and there are lots of washers, one either end of hi/lo/reverse selector shaft that sticks out of case. One loose on either end of selector drum, more held on by circlips. One inboard of the gear that always drops off, between it and selector dog. One outboard of it. I think there is one on the outer end of the other shaft too. None on either starter gear shaft, nor output gear. Can't remember where the 03 model had an extra one.

 

Thanks for the help merryman, I think I figured it out... i only had two loose ones and I put one one the hi/lo reverse shaft and the other one on the outboard gear and now it runs fine with no noise. And by the way i really love this quad it is awesome in 4x4.