Need help mounting mini-starter to lakewood bellhousing

Is this how the starter is supposed to mount in the Lakewood bellhousing? There is a bunch of slop in it. It's distance from the flywheel seems to be set by the 'cup' bolted inside the bellhousing but it can rotate almost a 1/4" with the bolt hole slop. Thanks in advance.

Yes, that is how mine is bolted on. It works great, but make sure you run a equal size ground cable between your starter and your negative battery lug too. You should be able to hear any alignment issues when it's engaged.

It's also important to check the bellhousing's alignment to the crankshaft AND to also check that the face of the bellhousing is square to the block.