If anyone else needs help, this is what I've found...
It appears the "gearshift plate" is cracked and causing my problems. There is also a "lifter cam" that appears to have hit the centrifugal clutch housing at some point and is a little damaged. I hope that there is no further damage inside the transimission. I removed the engine expecting the worst, what a pain in the neck, otherwise I think this repair may have been possible with the engine inside the frame. I am trying to order the necessary parts today to reassemble the engine and try it out. I will try and keep you guys posted if there are further repairs needed!
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