Well, I either found the problem or caused it.
I got the basket off w/o problems, and didn't mangle anything up too badly getting the bending lock washer off. I made sure everything was OK with the thrust washers and spacer behind it (yup) and wanted to check out why the shift drum bolt was sitting a little proud. It seemed tight, but I figured the best thing to do would be to pull it, clean it off and reinstall it at the right torque with loctite, in case it didn't have any before. As you probably already suspect if you've read this far I torqued it off trying to get it out. It was either in too tight, cross threaded or I just screwed up. Either way, now I'm working on getting out the stub without messing up the shift drum. I've got the stub center drilled about 1/4" and am working with propane and an EZ out to turn it out. I don't know a more inappropriately named tool than an EZ out, but I do know if I break it off in the stub I may end up looking to buy more than just a shift drum bolt so I'm going slow.
[Insert expletive here]
At least now I have a good answer to why one should have more than one motorcycle. This one won't be running for a while.
06 Wee Strom