I have been working on the same problem. I did all above and it am now at same poinr you guys are...from what I can determine, it is not possible to adjust the latch w/o taking it out of the door. Removing the latch appears to be a big job, so we might as well look at rebuilding the latch or replacing IT if we go through the bother of removing IT.
ANYONE KNOW ANYTHING ABOUT REBUILT OR REPLACEMENT PARTS FOR THE LATCH MECHANISM. OR, PRICE FOR LATCH ASSEMBLY AT SALVAGE YARD?