That white 'nut' screws in and out to adjust the outside handle actuator.  If it is adjusted too tight, you cannot operate the door lock.  Make sure you adjust it with the door lock engaged, as if the door were closed.

Also note that the key lock and the inside lock work together.  That is, when you operate the inside lock, you will see the locking rod on the key lock also moving. 

Also that actuator bar looks bent

I bought the same lock set for my 1970 240z they are junk never could get them to work properly 

On 9/17/2021 at 7:21 PM, CanTechZ said:

For those with early cars who may find this discussion later, here is a close up picture of the connection from the actuator on the key cylinder to the rod on the door lock mechanism. It shows the split plastic bushing that is used, instead of a clip type connection as shown above.

 

Anyone knows if, on the original door lock cylinders, if you disassemble them, does everything come out from the back of the cylinder, or the front?  

this photo is giving me hope it's from the back.

 

Sorry, but no. Everything comes out the front. You have to uncrimp the stainless cover on the side where you insert the key. That silver cover is known as a "facecap", and it's crimped in place.

Here's a pic of the facecap removed and the lock partially disassembled:

Ugh, what I was afraid of.

Thanks for the info!

Yup. Sorry to be the bearer of bad news. Good luck with the project!

15 hours ago, Interceptor said:

Ugh, what I was afraid of.

Don't be afraid of it.. just take a very little (we call them watch) screwdriver and do this in a clean well lighted work-room/place.

Take the lock and (make pictures all the time..) and simply uncrimp the stainless.. if you think you can't do it .. try it first on one you don't use.. It's more simple than you think and practice makes perfect. Keep the parts in a row and work slowly and careful.. you CAN do it!