360 instal, going on 3 days, need help

I've managed to wrestle this engine down and into both front engine mounts, but still cannot get it to hook up with the 4-spd tranny. It remains with less than 1 inch gap between eng and tranny housing.

Tried jacking up the tranny, then the engine, the lowering, then more wrestling, then put tranny in gear, then in neutral, then wrestle some more and on and on....

Should I have the engine lifted just above the motor mounts to get it seated with tranny first? or should it be in the mounts then force to meet with tranny?

PS - I checked that tranny shaft fit in the pilot bearing before installation. Its a 71 demon