I went through exactly the same thing with the same motor and a Powermaster 9000 mini starter. I had to shim and reshim it to get it the proper distance from the flexplate and even after that it just never worked right. Finally, after a year of screwing around with it I tossed it into the garbage can and bought a regular full size Chevy starter and had no more problems. IMO those mini starters stink.

During that year I had numerous conversations with Powermaster and they couldn't come up with any solutions. My pinion would only travel forward about a quarter inch but the new full sized one popped way out like a starter should.

Summit is good about taking things back, I suggest you return it and get a good old regular starter and save yourself a lot of headaches. I was chewing up my flexplate because I was only engaging the first 1/8 inch or so, and the new one went all the way in. The regular ones are even cheaper, like $ 300 for a mini and $ 100 for the regular one.

Don