I've been trying to adjust my Rescue 911 helicopter as well, as the arm doesn't rotate it all the way to the end position.

I find that the movement of the arm is much stiffer/harder after the helicopter direction rotation is complete. Looking at that, I get that the rotation of the friction wheel drives the direction change. But the direction of the helicopter is full rotated around after the movement arm has completed only half it's overall movement. After that, the friction wheel is just dragged along the friction plate until the end of the arm movement. No wonder the friction wheel develops flat spots which then keep it from rolling right.

Is this the way this is supposed to work? Seems a poor design. Would be much less stress on the motor and the friction wheel if the change in direction action aligned with a full sweep of movement arm. Or am I missing something?

It's gotta be mechanical.

Is the wiring harness to the copter pulling tight after it is in the spun around position?

Yes, the tire skids on the friction plate when the helicopter is fully spun around.

The tire shouldn't be SO tight on the friction plate that it seriously slows/stops the progress of the Helicopter on it's arc.

Has someone done previous work and made the friction plate really tight against the tire?