Help with Distributor sitting high

Hi Guys,
Test fitting my distributor into the engine and it doesn't look right, seems to be sitting high. I bought this long block along with the car and the dude really didn't know much about either. He claimed the 318 was a blueprint rebuild.

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Is that the right o ring? I tried putting one I thought was right and could not get it down for anything. Might be another angle to consider.

Jake