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I forgot to answer one question, I do not intend to use this lock on a safe. I just want to learn what is wrong with it.

These are the parts of a 6642 which has also the Zamak lever. Reassembling is difficult due to the lever spring. If somebody has here an easy method I would be gratefull.

That 6642 looks like mine except for the color of the drive cam and the fact that this lever seems to be riding even higher than mine. Looking at the lever spring, is there a big gap between the bolt and the lever? The easiest way I know of to replace the spring is to lay it over the bolt, attach it to the bolt and then place the lever in place leaving the lever end of the spring loose. Insert the screw. Now I take a piece of thin copper wire, fold it in two and work the folded end under the lever and onto the spring. Just use the wire to guide the spring into place under the lever and hook the free end over the lever. Pull it along with the wire while using one finger to guide it under and over.

I had already loosened the screw for disassembly. If it is normally assembled a normal sheet of paper fits between bolt and lever, but not a postcard.

I took apart a 6741 at work the other day to see what could be the problem? So few parts, Hmm...should be able to figure this out? Have you fixed it yet?
The only guess I have is the bottom(or Back side) of the lever where the lever bolt passes through may have been modified. I'm sure it has a name that I'm not using, but you can see it in Martin's second photo. Lever bolt spacer, lever bolt hole flange tube. Whatever it is? Is yours as long as the one in the photo?

The lock I had at the shop was missing the back cover. Wondering if the lever stop is also continued on the back side of the lock cover?

At the lock cover is only a small pin which goes into the small hole of the lever stop. I don't think the lever can ever come into contact with this pin.

Bent lever arm? Fence to long? Detent ball bearing at the bottom of the lever screw hole preventing the lever screw from going all the way in? Wrong lever screw?
What is being overlooked?
Let's see:
1. Lock case and cover
2. Detent ball bearing
3. Detent spring
4. Bolt
5. Lever spring
6. Lever with Bushing( integral part of the lever formed to hold the lever spring in place and through which the lever screw holds the lever to the lock case.)
7. lever screw
What's left? The wheel pack? Remove it and see if the lever arm drops to the correct position?

No, still not fixed. All my parts look just like the parts in the picture posted above. Note that there is no bushing built into the lever like in the brass levers used in other locks. The thing that has be beat is that the lock worked for many years and then quit working. I called my friend as asked him what it did or did not do that made him replace it. He told me that he had to dial the combination very carefully and dial it many times for the lock to open, it took him almost an hour. I am suspicious that the lever jamed and while he was fooling with the dial it loosened up, but this is just my guess. I asked him if it felt different or funny when he was trying to open it, but it has been goofed up for several months and he did not recall. When it finally did open he never locked it again. He furter told me that this happened suddenly, it worked fine up until this problem. He bought the safe used about 20 years ago and it worked fine until the combination dialing problem occurred and he never fooled with it. He gave it to me and I mounted it on a test stand, changed the combination to 20-40-60 and now it has this what appears to be a new problem. He did not take the lock apart and I also did not take the lock apart before the problem appeared. I did not remove the wheels, only the lever and bolt and they seem just fine. If I had any hair left I would be pulling it all out!

jharveee - I did check everything on your list except I did not remove the wheel pack. The lock will unlock just fine, but when locking the lever will move over the top of the lever stop and bind. That is why I stated that I am suspicious that my friends problem was that the lever was bound up and even when the combination was dialed correctly, the lever would not move. I even asked him if the last number of the combination was in the forbidden zone and he said no.

Well, I'm down to eyelashes, eyebrows and ear hair. If you get it figured out, I'd like to hear what was the deal.

Could you take a video of the problem, as it would more asily point out the issue?

One thing to check is if the levers attachment hole is still round, straight and on size, so that it can't move in unwanted directions.

I will work on that video. One thing that may be a clue; there is a bit of slop between the lever and the screw. In fact the lock will work if I put a thin spacer between the head of the screw and the lever.