Old Race 340 Teardown

Ok, now I get it.

I’ve seen distributors with the tang too long.

If you need some clearance there just grind a little off the bottom of the tang.

I would not use a gasket to shim the distributor up.
He's gotta have "something" to seal the distributor. He said the distributor does not have a machined slot for the O-ring seal.

To the OP, here's what "I" would do. Spray both sides of that existing seal with a good coat of Copper Coat spray and let it tack up. It never dries completely, so it will stand the distributor being turned to adjust timing and still seal fine.