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Posted By HDRock,
Dec 16, 2012 at 1:01 AM
Please see this thread page 5 Poulan® 18 in. 40 cc Wild Thing or Husqvarna 235 16-Inch 34.4cc ???
This is the info I found out about this problem
The round metal piece with the 2 notches is too long. This is common with this series of saws(61,266,268,272) when you mix and match from the original. I've dealt with this many times. You can probably grind a little off the end to fix your problem. Sometimes what happens is the plastic air defector can make the difference. On early models the deflector did not fit under the starter mounting screw area and on later models like the 268,272 the deflector fit under the starter completely and in effect moved the starter away from the flywheel by the width of the deflector.
Usually when you have a setup like you have,the starter won't retract because it's so pressed into the flywheel and can't move freely. Someone could have changed the reel from the original,who knows. Should be easy enough to fix.