Popper loosen the set screw to engage earlier tighten for later. Too tight never shift, too loose falls out and gone![X(] If you adjust this take it out, DON'T LOSE THE SPRING AND LITTLE BALL!, and put blue loctite on it. It has to be at least flush with the clutch or else it'll catch on the 2nd gear engagement tab and lock the car in second. I think factory setting is about 1-2 turns infrom flush. If you still get no shift to 2nd you'll need to remove the trans and clean and check all gears and clean out the clutch of sand grit etc. that may be in it. Also make sure the steel pin is in the 2nd gear clutch tab.[8D] PS your rotation is backwards in that John Madden drawing there

arrow should point up.