Hello Adam,
Okay...so I was able to get everything to mesh.
There were a couple of things going on. First, the two parts were mated together, which is fine, however Mechanica was having difficulty meshing the two parts because without a contact surface interface defined between the two parts Mechanical will bond the two parts using a conformal mesh between the adjacent boundaries. However, because the AutoGEM geometry tolerance was set to relative there were some edges and vertices that were being collapsed in order to simplify the mesh. This simplification was resulting in degenerate geometry at the mated surface between the two parts.
Setting the AutoGEM geometry tolerance to Absolute helped somewhat, but still resulted in errors. The mesh size ballooned due to many of small edges, surfaces, and vertices that were now being included in the geometry model during meshing. However, a single pass complete mesh could not be generated and Mechanica could not complete the mesh on subsequent passes.
However....having said all of that...the ultimate solution was to leave the AutoGEM geometry tolerance setting to Relative and create a contact interface between the two mated parts. This was not present in your model. By creating this contact interface between the two parts mated surfaces will be treated as separate by the mesher. Therefore, there will not be a conformal mesh created across the mated boundaries of the two parts.
I also notices that there was a fixed displacement constraint applied on the mating surface between the two parts. This will need to be removed as well prior to running a contact simulation as the fixed displacement constraint would conflict with the contact surfaces. You could place the fixed constraint on the opposite side to prevent any rigid body motion during the simulation.
Keep in mind with the fine mesh controls specified (i.e. 6 mm according to the model) this contact simulation will take some time. Also, don't forget to add either more contacts or constraints to all of the parts to prevent any rigid body motion, especially rigid body motion within the plane of contact between the two parts.
Let me know if you still have issues.
Thanks,
Steve
Stephen Seymour, PE
Seymour Engineering & Consulting Group