Thanks. Yes plastic V guide is in correct position. Tightness should not be an issue if it did not bind when there were no cables in the guide. Maybe I have to hook up on carb side to take slack out of cable- I will try that next.
I carefully put cables on twist grip assembly then put on handlebar and they bind without even attaching to carb. When I put it all together without cables they don't bind. They are new cables and not bent.