the 1st gen 600 drive gear is turned by 4 white (laid out in a + shape) tabs which slot into notches in the wheel hub. It is held in place by being wedged between wheel and fork. From the fact you've said it was found to be 'backed out' of the wheel, I think that would suggest something has failed with the drive gear itself and I would take the front wheel off so you can assess more closely what has.
I would guess something like a failed drive gear unit seal which lead to screwed up bearings allowing movement etc, or possibly the notches are worn and on their way out.
Either way, whip it off to get a better look, but I would imagine the odds are in favour of a replacement being needed since the units are normally replaced not repaired.
Hope this is of some help