Ok I tried it a few times again and still no progress. I did this time by putting the reverse gear, race, needle bearing, and race on the back of the reverse gear. That allowed me to see that the reverse gear teeth are engaged with the pinion gear teeth but even so it still sticks out the same amount. Is it just a slightly smaller diameter so the the O-Ring on the carrier provides a real tight seal so you have to use a hammer and tap it in? Thanks
Also on the water pump I couldn't get the impeller on over the new key that came with the kit so I used the old key. Is that a bad idea?