help me find an electrical gremlin, please

as for the gap testing I assume the is between the reluctor and the contact on the wiring and not the magnet right??? No way im ever gonna get .008 between magnet and the ridge on the reluctor

Yup, between the magnet and the high point on the reluctor. That's why it is important to use a brass feeler gauge.

I just got to thinking about what you said. The piece in the center of the black fiber block is a magnetized. That is where you want your .008 not on the flat part next to it. Sorry if I confused you.

Something else you will want to check once you get it set is shaft movement. Make sure the shaft is free of any lateral movement.