The Neutral Switch must be seated, or else you'll have both an oily mess and the upper gears in the tranny will jam when shifting, misaligned.
The shifter drum does not fit flush to the inside bearing hole. If you have a late shifter drum in an early case, the shoulder of the drum will sit higher than you were used to seeing with the early shift drum (near the shift end, where the little pins and cover live). This shoulder is wider on the later drums.
If you have K0 cases and are fitting a later shift drum, the later drum may not fit because the K0 spring arm detent system is different from the later ones: sometimes the little rollers on the sprung levers will not sit at the right height. The shift drums from the K6/F0 and later bikes don't fit into the K0 cases well, if at all, and vice-versa, because the case wall got thicker during the K1 engine, and the shifter drum, while a 'delta part' design, wasn't quite a 100% replacement fit.