Finally got it, after a question from Rob Lang at
Langs Offroad, he asked if there was any play in and out of the countershaft, my answer was there is absolutely none, he suggested I give the shaft a whack with a plastic mallet, in the hopes that the shaft would move in a bit freeing up the spacer, well... it did, after a bit of banging around, off the spacer came and I'll be able to change out the o-rings and outer seal as well, I'll be sure to use lots of anti seize when I do the install of the new spacer..... Thanks Rob
Ed..