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Hi Maury,
The tightest clearance without actually touching is ideal. Just make sure you get the proper rotor for that particular cap. I've seen many misapplications here, with gaps nearing 1/2"!! Also, as an added measure, drill two opposing small holes(~1/8") in the cap, between the towers, for ventilation. With the smaller caps, the air inside can become charged, and possibly cause a misfire condition.
Hope all is well up north.
Dave
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