Listen to this noise...

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That clip does not have to be tight, the parts ain't going anywhere. I have run my distributor for hundreds of miles without the clip. Far as I can tell, it's just an assembly-line aid.
What you think is wear, or what looks like wear, is not wear; that is how it is made. When it has oil on it, it is a bearing; it only moves a few degrees.
The nylon parts you found appear to be part of an old point set.[/QUOTE
That clip does not have to be tight, the parts ain't going anywhere. I have run my distributor for hundreds of miles without the clip. Far as I can tell, it's just an assembly-line aid.
What you think is wear, or what looks like wear, is not wear; that is how it is made. When it has oil on it, it is a bearing; it only moves a few degrees.
The nylon parts you found appear to be part of an old point set.
I could see how the breaker plate wouldn’t allow the cam to have much vertical play and I believe you have driven without the clip. That just seems to be the only thing that is allowing any play causing my issue. I thought the function of the clip was to keep the cam in place on top of the shaft and against the governor weights? This is the amount of play I get on the cam in the second picture. Appreciate the input!