Roland, thanks for stopping by. Your drawings are superb, as always.
Tim, Jonathan is right, the only way to really tell is to tear into the tin. The magneto seems to be a frequent source of failure on these machines, and it probably wasn't anything you did. Kirk Engines, a forum sponsor (above) may be able to supply you with a replacement part if you're looking to buy something new and better than original. Brian Branstetter posted pictures of the new part installed on his wife's 782 (which is a story in itself) on the main forum, Tuesday, July 08, 2014 at 11:56 am.
My brain is a bit stronger now, and I realize the relationship between my "F" "B" and "A" contacts wasn't quite correct earlier. Since you say you have your wiring sorted out, I'm only posting the following as an exercise and an attempt to avoid mis-directing someone.
The relationship of the contacts can be depicted as follows:
When the momentary "Start" contacts are made by the PTO switch, the current flows as follows (Reverse Relay shown pulled in):
And when the momentary contact from Terminal "F" is removed, the current from the alternator continues to flow through the contacts of the Reverse Relay:
Electrically speaking, the Reverse Relay contacts (as opposed to the Reverse Relay coil) are in parallel with the PTO Switch's momentary contact at the "F" terminal. That is, the Reverse Relay contacts provide a parallel path for the current to flow once the Reverse Relay is energized. The relationship of the "A" and "B" terminals, the Reverse Switch, and the Reverse Relay coil, however, is serial. This means that a failure to provide continuity at any component means the Reverse Relay coil drops out and consequently, since the Reverse Relay contacts open, the PTO clutch drops out. That is why I feel you should check for continuity across terminals "A" and "B", across the Reverse Switch contacts, and make sure you have a relatively low resistance across the coil of the Reverse Relay. Be sure to check the coil both ways, that is, switch your leads around because DC relays are supposed to include a diode in the circuit. If the components all check out, and you're sure you have wired them correctly (per Roland's diagram), the circuit should work.
Good Luck, you're making excellent progress, I think.