Put the lower unit back on the leg and attach the shift rods together, but not tighten the two nuts together completely.
Shift the handle on engine into neutral.
Adjust the LOWER rod only, up or down until prop spins freely in neutral.
Tighten the two nuts together without turning the lower shift rod!!
Shift into forward - neutral - and reverse with the handle, and check that the dog engages correctly. Remember to spin the prop while shifting. The movement of the handle should be the same from neutral to reverse and neutral forward just as the dog engages. If not - re-adjust the lower rod.