something in there is not connected properly and it's binding. Just take it all back apart you should be able to see what is going on.
As for the wire for the O/D... If it is so far down the shaft that you cannot get to it, then you have two options - 1) Relocate the O/D button or 2) cut the shaft down and now you have a custom ATX short shifter.
I would choose option 1, but you never know.