Unexplainable Transmission Stutter... help?

Ok I took it off. Loosened the lock nut which is a 1/4 socket. The nut took 29 full revolutions to come all the way off.

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Nope.should have been more clear, how many turns in to snug.
The lever touches a servo, when applied its like a brake band. When released, the roughly two turns allow it to freewheel. Too loose and it will slip,and too tight it will burn up.