1960 Valiant door latch/no release

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Curbweight

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Gettysburg, Pennsylvania

Hope someone can help with this. Driver side door will not open with outside handle. Have taken off interior trim to diagnose but am a bit confused. Locking mechanism seems to be working, both with interior handle and key from the outside, but outer pushbutton will not release door. Inside handle does. Latch unit is a bit hard to see, using a mirror to view. Window rail in the way. What possibly could have happened? No slamming shut or other unusual event. Did something break or come off? Where to look? Thanks to any guidance.
 
I chased this issue down on a 66 Barracuda and found that where the door knob rod hits the latch unit needed to be raised up, by welding on about 1/8 inch metal strap. picture enclosed
 

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Thank you amx364 for you guidance on the lock problem. It is like a surgery working on these things. The picture is a lot of help! I will post with progress and hopefully the solution.
Have a Happy New Year
 
60-62's are unique in that this problem can often be corrected at the door latch. Your latch mechanism is held in the door by (3) countersunk screws. Near them is a 1/2 " hex head bolt head. This hex head bolt is the adjustment to fix this issue (assuming there are no other problems). If this does not fix it, slightly straighten out the bends of the flat bar that connects the handle to the lock mechanism. To do this you have to go inside the door to remove the piece.
 
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