I've called Powerlite this morning and as expected, they where very helpful.
Decided that they probably send a small kit to fix the broken spring on the shaft since the starter is new and it's easier and quicker than returning the whole unit for a new one.
The flywheels ring gear is another story, I turned the crank by hand a full revolution and its only partly damaged in few places so hopefully it will be good enough for starting. I will try just to bolt on the Starter when it's fixed and hope for the best, Remove the engine is something I want to avoid if it isn't necassery, at least not now during our short summer season.
My theory is that the spring has been defect/broken from the beguinning and has never fully engaged to the ring gear, probably bounced and sometimes ended up in a position to crank the engine. The engine has always been starting without any hasitation so the small grip has probably been enough but also damaged the tooths in the ring gear.
Steve... The model number is RAC303.
Perfect fit without any shims, probably only my usual bad luck when ordering things
The ring gear was new so it has been eatead by the starter, about the compability between the bendix gears, look the same and should be correct, the lukas unit has slightly leaning ( not straight) tooths.
