OK I have one of these and the last time I had to adjust the cable was about 11 years ago so this is from memory
The very first thing is to check the shift rod height, if this is off all your other adjustments will be wrong. And, you should check to see if it will shift from neutral to FWD and REV by having someone turn the driveshaft clockwise and you work the shift rod. Watch the prop shaft to see what it does. This is just a basic test on the integrity of the lower unit shifting mechanism
Next, when setting up that shift cable, the drive is still off and you have the bracket (orange in your pic) holding the bell crank in the pivot housing at 90*. First make sure that bell crank moves easily and is lubed with grease. Next go up on the engine side and set the length of the cable with the
other special tool, using the barrel to change the length if necessary. Now secure the cable in the bracket up top. Then go to the bottom and tighten the retainer on the shift guide holding the shift cable. This basically sets how far the cable moves in each gear. What you want is equal throw on either side of neutral. If you don't get equal throw, it will go into one gear but grind or grrrr---CLUNK going into the other. A good test is this: look at where the shift cable goes into the red jacket you can see if move if someone works the shifter while you watch. When it's in neutral mark that spot with a sharpie. Then have someone shift it to REV, and make another mark, measure how far it is from N to Rev. Now do the same thing with FWD. These measurements should be equal or at least very close. Now you can install the drive. Next thing to check is the remote control cable adjustment. This also has to be adjusted remember the Cobra is a 2 cable system. Now you need a helper. Install the drive with the prop on. MAKE SURE THE KEY is not in the ignition!!! OK have your helper spin the prop and shift to fwd. It should lock in both ways (try to turn prop)
then shift to neutral, and have helper spin the prop, and shift to rev, same thing, it should lock in if you try to turn prop either way. If it ratchets you aren't right yet. If it locks in you're good. Check the factory manual for the adjustment of the remote cable.