318 distributor install question

I'm going to pull it again tomorrow night. I'll let you know what I find. This is the original dizzy to this motor, but I just had the motor rebuilt. I did lube the o ring, hoping that would do the trick but it is still sitting a little above the block.

It is still not clear to me what you have changed?

This is the original distributor, so it should fit. You didn't drop it and damage the drive tang?

Is it a new intermediate shaft/ gear?

It IS a new bushing, maybe it's not in right?

Pull the gear out and check the fit of the drive tang. If you have another/ old drive gear try subbing that

You NEED to fix this and you can NOT just force it. Maybe you know that...............