upset, starter probs

In my 1986 daytona turboz 2.2l I just got done replacing the transaxle with another '86. But now my starter doesn't want to turn over the motor. It makes the click sound. When I pull the starter out it engages just fine. But then put it in for it not to work. Each time after I try to engage it, I can turn the motor over by hand and here a click by the starter. The only thing I can figure is that it is jamming. But removing it and placing it back in doesn't seem to work. Any suggestions?

check the starter relay located in front of the driver side strut under the hood-they cost about $50 at the dealership, just replaced mine.