I know this is probably going to seem like a dumb question to some, but I have looked at it at every angle. How does the 2 speed transmission shift? I do not get how it shifts at all.

its a centrifugal shift system based on shaft rotaion (speed) when your vehicle is going fast enough the arm in the shift mechanism flings out to engage 2nd gear.... Its a little hard to explain but if you take apart the trans... Its pretty easy to visualize...

Ya know, before I ask questions, I should prolly read the manual. :-) I opened it up and read the tranny part. Thanks for the info. It sounds like what I read.