Your frame shows up on the OEM website, but your engine # does not. Please recheck.
You said:
Well, it certainly looks like it was the bearing... by the schematic in post#42 it looks like I need parts 7, 6, 4 and 3... and maybe 3 & 5? I can't seem to pull part 3 out of the case with a magnet. Should I be able to? And part 5 it pretty dirty from the shattered bearing but I assume I could clean it, re-lube it, put a new rubber gasket on it and be good?
Yes, #3 should come out easily with the magnet.
This may be what is stopping the clutch action from happening. You will need to get that thing out of there and clean up the "tunnel" very well. I HIGHLY recommend pulling the tranny to do this work. Mostly because you may need to remove the push rod to get to everything, not to mention being able to LOOK down in the hole.
It sounds like you will be replacing #'s 3, 4 and 6, possibly the piston, #5 as well. The bearing needs to have smooth surfaces on which to spin.
It sounds like you need some moly on those input splines, anyway. Do not blow this off. You will regret it, later.
Now I have to go to work. I'll be back on in a couple of hours.