Intermediate shaft issue

Well I've been having some minor issues with my car so I had another gent who owns a Carb shop take a look at my engine. I've still been having issues with my secondaries opening and have tried many things, so I figure he is the next best option. While looking into the carb issue, he didnt initially see anything so he decided to dig a bit deeper and look at the dizzy. So this is the area I want to concentrate on because I do believe it is just another issue I should deal with.

He found a lot of excess play while wiggling the rotor back and forth. He thought that the dizzy itself might be the issue, so we pulled it. No problems with the dizzy at all, nice an tight and the only movement is from the springs. So we look down into the engine and look at the slot itself. It appears to be worn out and only about a 1/4" of tip of the dizzy is engaging the slot in the intermediate shaft. You could see where it was rubbing or wiggling from movement side to side.

So heres a few questions for you engine guys. How far is the dizzy suppose to engage into the intermediate shaft? Is it suppose to be a tight fit with no movement at all once engaged? How about the shaft itself and its gear engaging the cam gear? I can stick a slotted screw driver into it, twist it back and forth and see it move. I assume you shouldnt see any movement if you twist it?

If I have to take a video of the movement I will try the best I can, but I think I explained it pretty well. I had the engine built by a shop and they gave me my old intermediate shaft from my 318 to use, so it is not new.

Thanks for the help guys.