FIXED!
After all your help, (everyone that is) including the pdf document, I realised that when I took it off, the center piece or clutch i believe it is, was stuck in the hub - kinda seized. Nothing that two sets of needle nosed pliers and a rubber mallet couldn't get out. I got it out, cleaned it up, put the spring back on it, (which is alot easier to do with the clutch out rather than jammed in the hub) and voila, kickin up dirt with the front tires now.
The only thing is that when I set the hub to free, it isn't disengaging. I imagine that is happening because I put grease on the outer part of the hub splines, I think that was a no-no. So I am gonna clean it up again and it should work fine.
Thanks for all the help guys/girls. Greatly appreciated.
I fully understand how a hub works now.
Robert

You can't go wrong putting grease on any part of the hub.

Some times the tire has to rotate a couple of times before the hub unlocks.

Now you need to do the other side.  It may work now but is likely to cause you problems later.

grease it all, but don't pack it too much,
just cover all the parts.