So it was the brakes.....interesting.
For a simpler fix than the one I posted, I suppose I would have put a screw through the brake-arm to use as a post instead of the alum. plate. But as I said before....no dremel. Doing it this way though you'd still need some sort of spacer between the brake-arm and the diff assembly to keep it in the neutral position.
Smart remark for the day:
"There is more than one way to skin a cat"
"How would you know....personal experience?"[X(]