And the final post in this saga. Checking the clutch basket and hub I found light grooving in basket, way more on hub. Hub was ruined so got both hub and basket. Guess what? Went aftermarket and when I went to put friction disk in the machining was off by 2 mm twisted. Broke out old basket, USA made filed on it removing all the nicks where clutch plate rides and stoned it smooth. Put it all back together and volia it works. When you do clutch , check basket, even very small nicks can keep clutch from disengaging