1972 40hp mercury shift shaft coupling and shifting issues

[dkonrai]

i repowered my bayliner with a 72 merc, 40 hp. now im getting really close. the control is a yamaha 703, with the mercury adapters.
the problem is that i dont which way the shift shaft coupler is supposed to be installed. i think this was correct?
so this stupid lu is driving me crazy. the manual just says to "reinstall the lower unit in reversal to the removal" what???
so i get the lu on, but, the shifter is really sticky going from neutral to reverse. i think i put the thing back together correct?
i am trying the shifter while the motor is not running. shouldn't the shifter still move in and out smoothly? or do i need the motor running??


is this correct?

or this? call this photo 3

dino

[lazzlonewolf]

Which is the correct way that cam goes on there????

[cr2k]

Also put some grease on the cam.