Nothing looks broken or installed wrong. The problem is, the door won't stay latched no matter how hard I slam, or how I play with the lock and handles.

This is the small piece that helps reset the latching mechanism (I think thats what it does)

Here it is from the front...

and here it is from the back (inside the 712).
Both photos show the mechanism installed with the big side up, instead of down.. I was trying everything to make it work! With the small side up, it engages the main latch and helps "reset" it...
The problem is, the post on the door, just does not engage.
Does anyone know how this is supposed to work? Anyone fix a latch? HELP!!!