65 Dart Door latch issue

The door will close all the way with the latch in or out. I took the rubber moulding off and it doesn't allow the door to close in any farther. The striker plate won't adjust in or out far enough either way to allow the door to be closed so the body lines are correct and be latched.

Close the door tight, pull door back out 1/2" or more before the ratchet catches and need to push the door handle button to open.

I'm considering cutting the gear off the inside, drilling a hole in it so that I can rotate it to where it needs to be and welding it there.

Thanks for the help!