Hiya. just wondering, were you trying this out with the engine running or at least turning the back wheel by hand? You need some movement to get the gears to engage. Otherwise, I'd definitely pull the cover off as MRieck suggests, so you can see that the mechanism is working ok, or not. As the neutral light goes out it indicates the drum is turning at least a little, but maybe not enough? Oh, what type was the leftover bolt... just wondering?
Cheers