The bendix is the starter gear that meshes with the flywheel. It pops out to mesh with ring gear, then retracts after engine starts. I'm assuming that is how these work.

**edit**
I just went out and looked at the starter I have laying in the garage. There is also a ground strap from the solenoid to the starter housing.
Replacing your starter should have taken care of this, though. Interesting info about the terminal block for the wiring. hmmmmmm........

__________________
Jimmy L.
'05 Acura TL 6MT
2001 ML430 My Spare

Gone:
'95 E300 188K "Batmobile" Texas Unfriendly Black
'85 300TD 235K "The Wagon" Texas Friendly White
'80 240D 154K "China" Scar engine installed
'81 300TD 240K "Smash"
'80 240D 230K "The Squash"
'81 240D 293K"Scar" Rear ended harder than Elton John