the vertical spacing is good as the tip is well into the range of the vertical wall & the lateral clearance seems alot in the pic but you said it was 1/16-1/32" which is acceptable & I'm sure the Echlin MO3000 .060" longer rotor helped with that. You can actually reduce it to .010-.015" lateral clearance by soldering material to extend it or bolting on part of a tip from a junk rotor but that requires dead on tight bushings tho any excessive gap that the spark has to jump outside the cylinder raises the required voltage & is a waste but we're plenty good for now & lets hope it was the cause of the stumbling. Do save that cap in the pic & drill a 1/2" hole in the top flat 2/3 of the way between the center post & the #1 cap terminal so we can check rotor phasing with a timing light when we get it running which'll be the 3rd clearance we want blueprinted (1) lateral clearance (2) rotor height (3) rotor phasing. Actually a 4th one is the height (sideways) of each reluctor tooth