Tohatsu 2007 40hp 2stroke Goes Forward in Neutral?

[goatboat2000]

Tohatsu 2007 40hp 2 stroke direct injected won't go all the way into reverse. Between true reverse and true neutral is actual neutral where the prop spins freely. In true neutral position it puts it into forward a bit and in true forward it is engaged in forward. The shifter cables are in the right spots, allowing for the NO pushbutton to engage in neutral allowing for the engine to start up in neutral. As you can see this is a big problem because the prop spins forward upon start up in neutral, and the reverse wont fully engage. Any ideas of what the problem is?

 

[pvanv]

If you disconnect the shift cable at the motor and manually shift the engine to neutral, is it in neutral? If so, then adjust the clevis to fit on the pin without slop or tension. I take it this is an MD40B or B2, right?