Looks like you have the shaft/lever turned the right way Notice the little shiny spot on the lever that is where the thimble is contacting the lever. While it is apart spin the governor and see if the flyweights and thimble move properly. As you are reinstalling the pan check to be sure the governor is engaging the cam, a small wire or thin flat plate can go between the housings. One more question does the governor shaft appear installed correctly? Can the thimble fully retract into the weights? If so the only thing left is the external adustment.