With the transmission in neutral, where does the end of the shift lever that comes out of the transmission, line up .
There's an 'N' cast into the transmission housing, the lever should be in approximate alignment to this letter .
I was out in the garage this morning and checked the gear shift linkage on all three of my R65's, all of the bikes when the transmission is in neutral, the 'ear' that the linkage goes through on the shift lever itself, is vertical, not forward as yours is .
Also, the arm that comes out of the transmission, is in direct alignment with the 'N' cast into the transmission case .
I'm going to go out on a limb, and say that there is a possibility that the wire link, is not the correct length .
I'll see if I can find the original one off of my '81, as I have replaced all of the links on my bikes, with Justin's Heim joint linkage .
I just noticed something in your picture, at least it has the appearance, the the 'ear' that the linkage goes through on the shift lever itself, may be longer than it needs to be .
I took some measurements on my '82 LS .
The distance between the bolt centers on the link are 3.125 inches .
The distance from the edge of the footrest casting just above where the pivot bolt for the shift lever is, is 1.5 inches to the top of the 'ear' on the shift lever istelf .
Possibly, you may not have the original lever, I don't know if you are the original owner of the bike or not .