Oliver 60 hay baler timing problems

I'm trying to get my Oliver 60 Hay baler time. I've got the packet fingers and plunger timed perfectly but I'm having trouble with the knotter clutch and needles.

I've got the plunger positioned so the projections on the plunger face are 1/4 to 3/4 " past the tip of the needles (as the needles are flush with the opening/bottom of the baler. When I turn the flywheel the plunger continues on it's stroke past the needles and then enters the return stroke and goes all the way back to the front of the baler and then on the following compression stroke the needles begin to enter the knotter unit but then they just sit there and they do not return home after the plunger has come and gone and then on the following stroke the plunger hits the plunger safety stop and I'm dead in the water.
How does the knotter clutch work and how is it activated? Is there a certain position the sprocket needs to be in before I time it?

Any suggestions?
 

Check to be sure spring in knotter clutch is not broken & attached on both ends. Is there any grease inside knotter clutch where trip dog is located?
 
I double checked the grease in the knotter clutch and it was full. i
checked the spring on the knotter clutch and it is attached and in
good working order.

I took the drive chain off and moved the knotter clutch sprocket all the
way counter clockwise and then replaced the chain and that seems to
have smoothed the needle/plunger timing out a bit but now when it's
time for the needles to return to the home position i hear the knotter
clutch click and there seems to be an attempt at the needles
returning but then they just stop after moving down and inch or so

Any other suggestions?
 

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