Update: Still no success getting the driveshaft in. It can be slid in halfway into the bushing, then no more. The deeper I slide the driveshaft into the bushing, the more friction on the bushing, until I am unable to rotate the driveshaft.
Retracing my steps, this all began with a leaking seal. The driveshaft was removed with no problems/no binding. As I pulled the leaking seal, the spring which keeps the seal tight was found broken (prob why the seal was leaking in the first place) and was hanging out the tailshaft. The other end of the spring was wedged somewhere inside the tailshaft. I pulled the wedged spring out.This may have caused the bushing to become out of round??
The last thing I want to do is pull the tailshaft. I'm hoping to somehow reset the bushing against the inside of the tailshaft.