Z-bar not aligned properly

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That is a photo of my car that had it in the wrong place to start with, don't use that as any example of where the bracket should be. I had to rework all that.

That's why its got a big red arrow indicating where the ball stud should have been mounted. But I see your point, it's not a correct example. I added a note to my original post to make it more clear.
 
that mis-alignment won't make much difference
what will is the fact that the chassis side ball doesn't seem to be into the bar far enough

the chassis side of the Z bar tube is usually pretty hard up toward the chassis rail and i can see half a mile of ball stud... that in my mind seems wrong, however happy to admit i have a different A-body from you, and impossible to tell from my work desk in london...you'd need to go yanking on it to check the install)

do you have a bellhousing stud installed in the chassis? i.e is that the right one seems LONG

OR

based on what i can see I presume that the nylon bushes are in the arm with the end pressed against the fingers of the spring slip... which aint right

undo the spring clip move the z bar towards the chassis as far as it will go, draw it back towards the trans slowly and make sure the ends of the spring clip go into the groove 1/4 of the way down the outside of the body of the nylon bushes, pinning them into a specific position in the z bar tube, and stopping it from moving inwards or outwards, you will not have transverse movement possible when its installed correctly on this side. do this job with the bellhousing ball stud and mount installed "hanging" in the arm, but not bolted to the bell, to give you space to check you have the important bit at the other end done right.

with the chassis side installed properly it should be impossible to pull the z bar off that ball stud.

Its a guess based on my own trials with this set up. nothing worked properly until i sorted this out and of course the internet was telling me to twist the arms, or i needed to cut off the z bar arms and relocate and all kinds of stuff that would have been detrimental to the whole set up once it was installed properly..

remember the sealing rubbers, little profiled donut type disks that fit either end to stop crap getting in and grinding your balls. keep the grit out of your grease, their profiled side fits in the end of the Z bar tube and the flat side faces the chassis or bell.... heat em in hot water to get them over the balls. Its a trial of endurance but worth it in the long run
they will sit at the narrowest section of the ball stud so you need the end of the z bar tube aligned with that. Looks achievable.... so i presume you have all the right parts and you car is not wider than everyone else's

Dave
 
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I definately have the '68 ball stud bracket as shown in your post. I really don't know for sure what year the bell housing is. It came with the engine in the car. The VIN on the engine matches the transmission and the dash, so I doubt that it was ever changed for something different.
I had exactly the same issue with my 71 Demon. The PO had a 72 and up bel housing on the car. As soon as I put the 71 and earlier (2892-482) bell housing on, everything lined up the way it should be.

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