Pedal to Z-bar?

Ok.....got the new bracket on the bellhousing, and now everything magically lines up exactly where it should. The only question I still have is that the zbar sits off of the bellhousing bracket by about 1/2". Is this correct, or even ok? I know it rides on the nylon bushing but was wondering if it is supposed to ride up against the bracket like in the pics above from Demon 408?