You said that the handle seems to be too big in diameter to properly fit the slot in the ring. However, is it possible that the issue is instead that the handle is positioned too close to the top of the slot and is therefore binding against the top of the slot? I'm still fairly new to this stuff, but this almost sounds like a '7409 ash sweep system vs. the "H" type ash sweep system' issue. I believe the 1995 models came with the 7409 system, isn't that correct? If the previous owner mistakenly replaced the ash sweep assembly with parts from an "H" type kit, I think the result might be some sort of binding such as you are describing. Just a guess, but thought I'd throw it out.