OK another update. Today i sat down and played with the clutch fork and throw out bearing, sliding them back and fourth on the shaft of the transmission.
It appears that the fork was catching on a washer on one of the bolts that attach the bell housing to the tranny. This happened because the holder on the fork (opposite side from the slave cylinder) was bent out of shape and caused the fork to bind on the washer. I put a fork on that was not damaged and it no longer got hung up. I installed the transmission and the throwout bearing now moves back and fourth as it should. I am gonna finish bolting it all up tomorrow, and have my fingers crossed.

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1979 240D with a 617 turbo diesel.