Honda HR194 coil starter HELP!

I'm having trouble with my coil (pull) starter. I replaced the coil spring and reassembled the starter. However, if I tighten down the bolt in the center, the cord won't pull out. No problem, I loosen it off a bit and the cord pulls out - but it won't retract. No problem, I loosen it off a little more and the cord pulls out and retracts no issues. HOWEVER, when I install the starter assembly, it won't turn the (I think it's called) flywheel. If I tighten down the bolt in the starter, I can turn the flywheel, but the cord won't retract. Please advise, before I throw the mower in the river.