RE: .28 in a funfactor? oh dear....
Try the 14/18 with the buggy wheels in four wheel drive. You engine and clutch setup should have no problems with that combo.
What about using a heavier spring to slow down the clutch engagement? The sudden impact of all that power from the engine is what is killing the pinions.
I switched over to the HPI bells and haven't had a problem with them so I forgot about the need for 11T steel pinions there has to be a solution out there other than custom. I will have to start looking around again.
What about going to a single speed like Scouser said? You said that you did get it to shift and it was to fast/uncontrolable.
rolland