Craftsman 12" back gear alignment

[rockyrude]

I am trying to align the small back gear with the spindle gear. It catches on the step pulley before it can engage. The problem I am having is the gear won't move on the shaft. Yes, I have loosened the set screw

 

[Nutfarmer]

On some equipment there may be two set screws with one acting like a lock to hold the main one from looseing.

 

[rockyrude]

Thought about that, don't see two screws