Well, bad bearings on the CB would cause heat and other issues, but not highly likely your issue. If not taken care of, they will grenade and more than likely destroy your spurs as the CB flops around like a lame duck. If they feel gritty and the inner race has noticeable wobble to it, then replace them.
FastEddie (forum sponsor) sells bearings at $1 a piece and shipping is reasonable. Just buy 10 rubber shielded and keep them on hand.
As for the shoes, I'm talking about the shoes in the two speed itself. Not the ones on the engine, the ones in the inside spur gear.
Part # B3404, the half moon things. Ignore the circles, that was for someone else.
The screws that go into those shoes go through the shoe on one side and thread into the other shoe on the other side. So, they kind of create a slide by letting the shoes slide on the screws. The holes that "slide" may be a bit too small and hanging on the shoe itself. So you very lightly ream those out. Also, the screws have springs on them. The springs are tapered at one end. The tapered end should go under the head of the screw or it could also hang on the screws as the shoes slide.
I believe the stock setting for the two speed shoes is to screw the screws gently in until the spring bottoms out and is fully compressed, then back each screw off 4 turns. Be gentle when screwing the screws in as to not permanently deform the springs.
As with many things RC... it takes 2000 words to explain something you can be shown in 30 seconds.
