djricksha wrote:HI YOU CANNOT ADJUST THE CAM ON THAT MECH
Caps-Lock!

Yelling at me ain't gonna get me to move any faster..!
Okay guys, update -
Last night I spent about two hours, having the mech select and reject over 100 records. Sometimes I did it manually (by rotating the cam by hand), and each time I watched what was going on. I made adjustments to the long arm some times, comparing "before"s and "after"s. I also worked on the crescent-shaped metal segment that the black lifting arm presses down on to life the tone-arm (which some of you mentioned could be warped). Here's my final conclusion -
The issue is in the transfer motor, transmission, or the lifting rod. (Maybe my lifting rod is worn?)
The overall
RANGE of motion - from the cam lifting the tone-arm to the cam setting the tone-arm down -
is not enough. With the long arm adjusted so that there's 1/16th clearance between the needle and the transfer arm, the tone-arm sits too high and rides up off the record. If I adjust it down, well, then, the record plays fine, but the tonearm hits the transfer arm. D'oh.
The crescent-shaped plate IS BENT, but it's bent DOWN. (i.e. The wrong way.) A few times, when I had the long-arm adjusted, the needle would lose tracking in the middle of the record, and not even make contact by the inside of the record. I have not adjusted this yet - BUT it wouldn't matter: It would give the same result as adjusting the long-arm. (Adjust it down, and then the tone-arm wouldn't lift high enough to clear the transfer-arm..)
I tried adjusting the switch, and while it helped, it didn't help *enough*. It was still riding up some. (And I took it to the extreme - any more adjustment out, and the switch wouldn't even register, the record ending up cancelling itself immediately as the transfer motor never stops..)
So this means I have wear - not on the gears (since motion on the arm is rather snug - very little play), but somewhere else. This is leading me to believe that the angle part (with the 'Long Crank Pin' and the 'Short Crank Pin' - the pins that raise and lower the 'sector gear' (the quarter-circle-shaped gear)) is either worn or bent, or the 'transfer link' (the piece of metal that is connected to the sector gear and the right-angle assembly on the transfer motor) is worn, limiting the movement of the sector gear.
This weekend I'm going to strip that section of the mech apart again, and go through it all a second time. It can't hurt, and maybe I'll find something I did wrong. (Forget a E-clip?, etc..) I'll re-step through the adjustments as well while assembling, make sure that's not an issue either.
Thanks for the input, guys!
I'm strange.. I like 'Rock And Roll (Part 1) from Gary Glitter more than the more common (Part 2)..