The problem I've been having is that the end nut simply isn't engaging the gear most of the time. It gets loose and even when it's tighetened it doesn't perform well. I'm considering tying off the cable and just keeping it in second gear, it sounds like a pretty simple way to make it a single speed without buying a new back wheel.
I've considered trying to make all 3 gears functional, but thus far I haven't been sucessful and I'm afraid to take apart the hub. There are far too many parts in there for me to ever put that back together.
Thanks for your help, everyone.