Adjust the clutch.
Screwdriver shifting is a yes. But even with manual shifting I've been getting false nuetrals when shifting from second to third gear. Just making sure I'm not missing anything before I bolt up and mount the engine on the frame.Will it go into the gear positions if you turn the shift drum with a screwdriver on the end? Also, you need to turn the input shaft to get it to shift, the forks cant move the gears until the engagement dogs line up.