Definitely adjust the friction adjustment as suggested. You want it loose enough to dial freely but not so loose that flip-spinning the dial will add momentum and spin the first number past the opening-stopping number. Also make certain that the dial ring is accurately centered so the spindle is not at an angle.
First off, the dial is hard to turn. It's not that I've got the threaded rod too short. [with the cover on - maybe too long] The dial turns freely but when I've picked up all three wheels it's got lots of resistance. It opens on 38 (not 41 or 50) consistent with the instructions included, but when I dial a new combination to the change index the change key can't be inserted all the way.
You must dial the lock to the CURRENT combination on the change index before inserting the change key. Your statement seemed to reverse this?
This paragraph has me a little worried. The second sentence suggests that the last wheel may have the change key socket turned out of alignment with the other two. As the dial turns the first two numbers, it may then be dragging the third wheel. Your last sentence would confirm this. Looking at the edge of the change key socket, you should see a small line. All three sockets should be aligned the same.
Depending on how the lock body is mounted, the drive wheel should be turned so the spline key goes in at the designated slot. To make that decision refer to the direction the lock
bolt points out of the case to. The choices are Left, Right, Up, or Down.
There are a number of things to consider and in which order. I hope you can call someone who can talk you through this directly. Half-blind trouble shooting takes an awful lot of patience and time. The pictures referred to are worth their weight in gold.
Good luck though, we've all been there. No matter how bad it seems, you are not our first confused person.
Nothing is foolproof to a talented fool. Wisdom is not just in determining how to do something, but also includes determining whether it should be done at all.