PROBLEM SOLVED!
Does anyone see my mistake in photo #1?
If you don't, what happened was I had taken off the tin bendix cover to lube the slides for the fork and add some white litho grease to the reduction gear. When I popped the cover off I didn't notice the position of the tab (doh!), so when I put it back together, I put the tab INTO the recess, instead of resting it ON TOP OF the recess. This caused the bendix to not return all the way, hang on the flywheel, and scrape away!
I realized my mistake as soon as I looked at the "new" unit in the box. I'm gonna keep the extra starter around just in case something else lets go, I won't have to go shopping first.
Cheers for the advice on the stud. I guess the FSM has the stud in the lower hole, but it's easier to get things lined up with the shim with the stud being in the upper hole, and I was able to attach the nut and tighten it completely from under the car - no more laying on top of the air cleaner!
Thanks again to all, case closed.
PS - I'm gonna put a new negative battery cable on soon. This one has been "repaired" but I'll do it right in the next couple of weeks.
