32 Outside Door Handle Issue

[TomT/Williamsburg]

Passenger door will not open from the outside - the latch just sticks out enough to prevent it. First pic shows how the inside handle retracts the latch all the way in. Second pic shows how the outside handle leaves the latch out. Third pic shows how there is play in the handle and where it is pictured is where It first starts to retract the latch. Sprayed some Kroil within to loosen things up but no good.

I would appreciate any input - thanks