Seems like some people have problems with the Dana 3-speed free-wheeling on them. Here's a little trick to get it working right for a coaster brake.
When you open yours up you will see this. Note the yellow pointer to that pawl. I played with it in it's original configuration, and noticed that when backpedaling, that pawl didn't do anything but hang out.
In this picture you will notice that conveniently placed notch next to the pawl.
I found a little spring that fit snugly into that notch. It forces the pawl to engage whenever you backpedal.
When reassembled as you backpedal the tranny basically "locks" into reverse. This seemed to solve the problem! Hope it helps.
When you open yours up you will see this. Note the yellow pointer to that pawl. I played with it in it's original configuration, and noticed that when backpedaling, that pawl didn't do anything but hang out.
In this picture you will notice that conveniently placed notch next to the pawl.
I found a little spring that fit snugly into that notch. It forces the pawl to engage whenever you backpedal.
When reassembled as you backpedal the tranny basically "locks" into reverse. This seemed to solve the problem! Hope it helps.