Chuck,
Dog clutches work best when they either fully engaged or disengaged so anything you can do to improve this will be helpful. I have designed a few and here are a couple of things that have helped.
Make the slot in the timing gear much wider than the tongue on the sleeve. Maybe even to the point that the slot is most of the way around the gear with only a tongue sticking out to engage the other tongue. It is only driving one one face anyway so this will not change the operation. This allows time for the tongue to engage the slot more fully.
Keep the edges of the slot and tongue sharp with only a very slight breaking of the edge for wear purposes. This reduces the tendency for the sleeve and gear to cam away from each other. Harden the tongue and slot to reduce wear.
Dog clutches really like a digital, on-off, type input and not a slow analog input like the movement of the flyballs varying with RPM. Anything you can do to provide a break-over-center action in the movement of the sleeve will be helpful. One way to visualize this is to extent the pawl that engages the groove in the sliding sleeve on the opposite side of the bearing that the flyball arm pivots on. Hook a compression spring between these two extensions. When the flyballs are in mid position the spring will be at it's maximum extension and exerting no torque on the flyball arms. If the flyballs move either outward or inward the spring will try to move them in that direction. This is of course in addition to the regular springs in the governor. This is not a good working solution as the mass of the flyballs will slow the action down, but might work on a low speed engine if it could be fitted in. A much better solution would to make the groove wide and apply the break-over-center action to only the sleeve. What I described was only to visualize the desired action.
One other possible problem is if the clutch disengages part way through the cycle, say when the inlet valve is open. The valve would then stay open until the engine slowed down, shortly I am sure, before the clutch would reengage and allow the valve to close.
Chuck,I am not trying to be negative about it. I think it will work, but that it may get a little more complicated to work the way you want it to.
Gail in NM