okay don't know if anyone is still looking in on this post but here goes.
I decided after several install/remove solenoids to go ahead and remove the primary case a get a look at the other side of the problem. as you can see the pinion gear is still riding(partially) on the clutch ring gear. I would think with the power removed that pinion should be pulled back from the clutch ring? no amount of "convincing" will allow it to be pushed back off of the clutch, although I can move it so it is in complete contact with the clutch ring gear.
I am thinking my next move is to remove starter shaft assembly and see what's going on behind there...any tips, suggestions...prayers?
thanks
Mac