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Perhaps Lars can answer this best, but just so everyone can know....
On reassembly, is this gap too large?
There is one shim there, as that was all that was there on disassembly. The '73 Shop Manual has a good breakdown description (even placement of the condenser and coil leads onto the point spring is illustrated), but I couldn't find anything addressing a gear-to-body gap measurement.
Did not roll-pin it yet into place.
From: At my Bar drinking and wrenching in Lafayette Colorado
Sorry I didn't notice your thread until just now. Cast iron distributors can be shimmed to a little under .010" (no tighter than .005"), and aluminum housing units need a little more clearance due to the expansion (growth in length) of the aluminum housing - use a number in the mid-teens for those (.015"). It's not essential that you hit these numbers on the nose - the object is just to get the majority of the slop out of the shaft endplay without going too tight. If you go too tight, you'll chew up the shims and put metal into your engine, so stay a little on the loose side rather than trying to go too tight. You can buy Moroso shim kit part number 26140 to get the hardened shims. Be sure to "clock" the drive gear so that the dimple in the gear points the same direction as the firing tab on your rotor - this will assure that the distributor body will be correctly "clocked" in your block once you set the timing. E-mail me for my "How to install your distributor" tech paper for correct clocking, and the GM Service Bulletin recommended clocking, for the tach drive distributor in the C3 body.