Put some gear marking compound on the flywheel teeth. There should be .060" clearance in the root of the tooth. If the mesh is too close the starter will need to pivot outward. Is this a stock bell housing? Its also possible the flywheel teeth are further forward towards the block than stock. The starter bendix may be coming out far enough to touch the teeth. In that case a simple shim between the bell housing and starter will fix it. Before anything call Dan Brewer and ask him.
Doug
Stock bellhousing, and when I shimmed my starter away from the block the noise seemed worse, Ill try to shim more....
