Never mind. I had a crazy idea to try and free the starter clutch by jumping the starter with reversed terminals and the bike cranked properly. The damn rebuild kit for the starter had reverse polarity. This is what got me so good, I was getting ready to perform a tear down. Look at the position of the brushes. The part on the right (original) with the positive terminals on the right brush. And the aftermarket kit on the left with the positive brush on the left. That's what was making my clutch "spin" freely - in the freewheel (clockwise) direction. I swapped the brushes from the new one into the old one, and placed the brushes into their proper positions.
Be warned, the positive side has to be insulated from the case. See the aftermarket part? The insulation (the yellow board below the brush) is on the wrong side. If you were to simply swap the brush positions, you would probably fry your bike by shorting battery positive to the starter cade (bike ground). The only way to make this situation work is to transplant the brushes into the old part.
