New powerhead no stupid thing will not go in reverse

[klauricella]

Just replaced powerhead on a 1989 225 Johnson and will not go into reverse when in the water. It makes a bad grinding noise like it can not fully engage, but it goes into forward fine. I have adjusted the cable which did not help. When I checked out of water in goes in fine. I just dropped gear housing to check rod length the problem is that the rod is not long enough. To get to 27 13/32 I run out of thread. I have never had problems with this before now. Also powerhead is a 1992 but it bolted up fine and all the controls are from the 1989.

Thanks
Kevin