Yea Id say the edges of the gears are rounded off and not meshing completely. Sounds like trans work. Lots of goodies in them. Only time i've seen a vtwin kawi have trans probs is when a buddy with a 700 prairie put big mud tires, lift, and just didnt take care of it. snappped some gears in there. Pretty much a bullit proof engine/trans combo if you take care of it and dont abuse it. I've had to adjust the linkage on mine a few times. If you catch it early enough and dont drive it with it slipping or not going into gear properly you will save the trans. Just when people think, "oh its ok, I will just keep ridin it till it gets dark out". Thats when stuff starts breakin.
2005 Brute Force 750, Big Gun full exhaust, ITP SS108 12" Rims, 27" Mudlites, K&N
Pro Armor Skids, Custom Advanced Timing,
3000lb winch on recievers front and rear, Rejetted
Over 322hrs of hard life and counting!