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.

Check your assembly against the parts diagram. 
 
You may have the spring in backwards.
The outside end of the spring should sit in a little pocket, nice and flat, if installed the correct way.
 
https://www.ereplacementparts.com/honda-hr194-pxavinhr1941000001-lawn-mower-parts-c-37657_188003_272678.html 

 

Also, make sure part #3 is fully seated.  
 
When trying to install, once it slips into the spring correctly, it'll drop in about another 1/4".
Getting those both together can be challenging and slight movement of the spring (center part)
may be necessary.
 
.