I still have the fork tubes mounted to the bike. I have removed the cap, spacer tube, washer, spring, damper bolt (from the bottom of the tube) and removed the damper and short spring. I have pried the dust cap (rubber seal) and slid it all the way up. There is a piece of plastic? or nylon? that is blocking the circlip(I assume). I do not have a manual for this bike but I can not get one for a few days, so the help would be great!!
Just pry the plastic ring up (nothing is holding it). Perhaps it's stuck to the foam ring underneath it. After you remove the circlip, the the fork tube and lower will have to be pulled apart. The fork seal is in very tight. Hold the tube in one hand and the lower in the other hand. Push the forks together. Yank them apart with force (a bushing inside of the forks will hit against the seal like a slide hammer). They won't come apart in one pull. Push them - in - OUT -in - OUT - in - OUT