[blykins]

You've got the gear on the cable the correct way.

Make sure the little pilot end of that driven gear isn't bottoming out when you bolt it in.

If you want to check if the drive gear is in fact turning (no reason it shouldn't though), jack the rearend of the car up, put it on jackstands, pull the coil wire, and have someone bump the starter in gear. You should be able to see if it's turning up there.