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...Can what-ever this spacer is back in there be removed? Not sure it will be enough but is bound to help.



Hold off with the welding just yet....Some years of these block's motor mount ears are thicker than others.

Looks like all you need to do is use a hack saw to cut off a small amount of the FRONT of that little tube that the bolt goes through on the front mount (cut the tube on the opposite side indicated in this picture by the little circle).

It looks like if the front edge of the motor mount mount sat flush with the front of the forward upright, it would fit. (notice that the amount of interference is equal to the amount the tube sticks to far forward)

That way the engine can slide back and the rear tab will drop into place. Sometimes in this life, all you need is a hammer, a hacksaw and a pair of vice-grips to get by....