I am in the process of replacing my diverter vavle. I figured its a quick job..turns out isn't (at least not for me, the rookie.)

Here is my issue..I can get the valve in no problem..but the valve/stem will keep turing counter clockwise, and I cant get 100% of the water to go to the spout..its about 80% to the spout and 20% still to the head.

If I turn it clock wise, it will completely seal off the head and divert 100% to the spout..but the valve/stem will keep turning...The handle is not stripped either..I replaced those as well.

I dont think there is anything else i need to replace..there is nothing in the pipe that I know that is part of this assembly.

Here is the new (top) and old (bottom) valves:

Here is the best pic I could take of the inside of the pipe..its kind of dim..but I dont see anything in there that should/needs to be replaced:

I am desperate from help..something this simple..I have wasted hours on