I guarantee its the way you have the small spring in place. Triple check your setup with the pics here


http://www.cascadecrawlers.com/toyota/hubrebuild/



I assembled my SA hubs today and one of them had a bent spring. I installed it as is and it did the exact same thing you explained. It would turn only about half way from free to locked. Took them off, bent the spring back in place as best as I could, and it worked fine.


If the spring is not in the EXACT place it needs to be, it wont work.


Post some pics of the way you have your small spring on the pawl and clutch and we can tell you if you have it assembled right.


Also count the splines where the axle connect to verify you have the proper hubs.

 

The covers are interchangeable, the inner clutch rings are not. The solid axle variety are thicker and when installed in an IFS hub will not disengage.

 

I took the blasted things apart yet again - I think I could do this in the dark. I took the tension spring and the pawl plate off and just had the inner hub on the cover - it will freewheel that way. Whe I put the pawl plate on the cover without the tension spring it will not freewheel. I'm going to take the cover and know apart, remove teh ball bearing and spring along with the gasket and see if the know is the max distance up into the cover plate it can go.
I sent an e-mail to Nancy at YOTAYARD asking if some how parts might have gotten mixed-up while they had the hubs in the dunk tank and the covers seperated. I asked for ideas.

 

Well I give up. I took the hubs to a transmission shop - the mechanic has a 87 with manual hubs - and even he couldn't get the hubs to free-wheel.
This next week I'm taked the whole mess to a dealer to see if they will install the hubs.
No answer from YOTAYARD so I'll call on Monday.
Even wih all the springs removed they will no wcompletly disengage...