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any video of the gear changing?
if you remove the chain, does the derailleur move just past the smallest sprocket (to allow for an overshift to get it in gear)?
It may be the chain length; how did you determine the chain length?
I have the that Simplex model 3 speed 1/8" on my 1948 bike. Moves correctly. The initial setup took a bit of time following the instructions.
This involved starting from scratch and following the instructions carefully. Each time it seemed to improve my application of the instructions.
OK, so begging some more advice/help here. I've got the Simplex Tour de France set up and working fine over two cogs, but it always slips or skips on the smallest cog/highest gear (which is only a 16 tooth). It's as if the tension on the tension arm spring isn't high enough, (but it's twisted round so high that it almost took the end of my finger of today!) and the arm skips forward as you put force on the pedals. NO amount of faffing or alteration seems to stop this, and I am frankly, at a loss to sort it out or even understand why? it happens.
SO,, any help or ideas offered would be greatly appreciated indeed, (before I give up on the whole mis-adventure and sell the lot)...