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Drop it a .004"
Phil, drop it the .004" and a hair to the right. and let it go. That's the best you can get. Lock it down and weld washers to the bellhousing. The alignment is done. Now we are back to the starter gear clearance. Check the gap, cut the block plate if you don't have better than 80% gear engagement. Check the gap and shot a picture. I am thinking you are good. Rick.
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