The pictures below are from a 16s lever set PW, (Swiss I think). It has a spring loaded setting wheel. As the set lever is pulled out, an angled cam pushes the setting wheel upward and theoretically should engage the minute wheel. The problem is this set wheel does not elevate far enough to engage the minute wheel, even with the set lever fully extended until it touches the the pillar plate. If I remove the set lever, and manually activate the mechanism, I can JUST obtain enough elevation to catch the teeth of the minute wheel. But to do that with the lever would require I thin the set lever body to gain more clearance from the plate. Is anyone familiar with this setting mechanism or dealt with the same issue before?
Thank You, Bill

First, your watch isn't Swiss, its a 16 size Illinois HC Getty Model.
I noticed that the retaining bridge over the minute wheel isn't present. This bridge, which is held by two screws (you can see the threaded holes next to the minute wheel) prevents the upward movement of the minute wheel, keeping it in contact with the setting wheel. This might be part of the problem , I cannot tell from the scans.
When the setting lever is out, the gear teeth on the spring loaded wheel shold engage about 2/3 of the height of both the winding and minute wheels. Also, the two little "semi circular" sections of the spring loaded wheel should be just a little below the top of the center boss that surrounds them. If they aren't, then the spring loaded wheel is not being raised enough.

Ed ...Thank You! I checked Shugart and you are correct! This watch is an Illinois Model 4, Getty. And yes, I do have the retaining bridge, just didn't install it for the photo. After reading your note and testing further the problem is caused by the set spring which is very slightly out of flat. I removed the spring and the mechanism operates perfectly! It appears the set spring is the culprit. Does anyone know if these Illinois springs are still available?

Thank You, Bill