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Ok..yes I get the dumbass award. I simply didn't know about the shifter plate...I did realign it exactly as it is shown in the FSM and it works much better now..I still have a little grind going into 2nd if i shift quickly enough, but all in all it works like its supposed to now. I still don't know if using the smaller t/o bearing is the right thing though..
I guess this is part of the reason I have read alot about NOT using a "short throw" shifter...
I've read that the Z tranny is temperamental when speed shifting. When I slam in between gears I can feel a little resistance, but when I shift a little slower, its butter. and this is after a CD009 swap, just FYI