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By my recollection, the nose does not go in the pilot of the trans . It only has to match up with the two bolts and fit flush to the case. The starter you need is for an application like the 318/360 from about 1990 up.

And 3.9 V6. this engine is a 318 based engine.
Yes the nose goes into the pilot. This is helps give the starter support while starting, keeping it in alignment.