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Did you spin the tc set up with the dist drive installed? Is it possible you pushed the rear cam plug to far in? Never saw that problem before. tight cam bearing not letting cam go back all the way? these are things I would check if you haven't already.





This could be possible ,Have you tried a different upper gear? or is the upper gear seated to the block?



Here is my opinion on the matter, if its a Chinese crank chances could very well be that crank snout is machined up to the main flange more than mornal.

I really don't see any problems with the crank sprocket fully seating rearward as the engine is rotating the chain will keep it in line and not walking but...the simplest and most cost effective repair would be to take the extra sprocket and have it milled(machined)to be used as a spacer.