First things first.
Disconnect the lower shift rod from the upper shift rod. There is a tiny cotter pin and tiny shaft that locks the two together. When disconnected, make sure the lower shift rod is screwed all the way in by turning it clockwise (looking from the top)
Now, manually push down on the lower shift rod all the way down. This should be forward. Try turning the prop and it should not turn. If this is so, mark the lowest point the lower shift rod goes in this position. Use the hole as a reference point and put the marking on the lower shift rod.
Next manually pull up the lower shift rod all the way up. Again this should be reverse and the props should not turn manually. Mark this highest point on the shift rod.
Next, determine the mid-point between the two markings and manually shift the lower shift rod to this point., this should be neutral and you should be able to manually turn the prop freely. If not, try finding the neutral by moving the lower shift rod little by little in either direction to find neutral and mark it.
Next, reconnect the upper shift rod to the lower shift rod. Then test the control lever shifting into forward. Does the lower shift rod lines up to the lower markings you made earlier? How about when you go to neutral and reverse? If not, then make adjustments.
There are two points of adjustments, the most common one is the threaded portion of the shift rods (lower). And the other is the shift arm, which is located below the lower carb. if you follow the cable linkage you won't miss it. The least common point of adjustment is the control lever itself.
Remember, there is not a whole lot of shifting involved. We're talking maybe a 1/4~ 3/8 inch of movement up and down the neutral position of the lower shift rod.