Non-switching of the neutral is generally permitted, as long as L1 & L2 is switched.
Max.

 

I got it working! Turns out I DIDN'T mis-wire the relays. Your last suggestion got me thinking and it occurred to me that the original motor was getting the the starting windings switched but between +120 -> neutral and -120 and neutral. This is why only one of the 4 leads was getting switched!

I tested it and like yours this configuration the neutral is connected but everything else disconnected when motor stopped:

T2 | -120 | +120 | 5
T1 | -120 | -120| P1
T3 | +120 | +120 | 4
Neutral: 0 | 0 | 8

I'm not sure if there are any disadvantages to this setup over your last suggestion, but it I take some comfort in knowing that it worked problem free in is configuration for 20 years.

Wanted to say one last thanks to you and Max for your help!

NOTE The sequence I have labled the "T" terminals is T2 | T1 | T3 I think you assumed T1 | T2 | T3

Output | Forward | Reverse | Motor input
T2 | -120 | -120 | 5
T1 | -120 | +120 | P1
T3 | +120 | -120 | 4
Neutral: 0 | 0 | 8
This leaves neutral connected to the winding when the motor is stopped which is reasonably safe but may not conform to regulations in the USA. If you connect motor terminal 8 to motor terminals 2 & 3 (Centre point of main winding.) then in the stop position the motor windings are not connected to any supply wire. This point will be at about neutral potential.
The schematic you posted in post #19 is the standard one for capacitor start capacitor run. It is the dual voltage motor that I was not familiar with. I imagined the start winding would be in parallel for low voltage and in series for high voltage.

Les.