Keep in mind that the problem was not that the dizzy tang was on top of the pump drive and had 1/32" gap. It was after engagement of the tang and pump drive that it was riding high.
Of coarse its about 1/4" up if I miss the alignment with the pump shaft.
After some wiggling and stuff it dropped right down onto the intake even w/o the gasket.
Maybe the pump rod was not exactly straight or?? when I was dropping it in?
I do know I am engaging the pump rod as I pulled the dizzy up and turned the pump rod 360* by advancing one tooth of the dizzy gear and dropping it back down each time.
I had forgot about this simple pump rod trick until I was fiddling with it. I didn't need a screwdriver or spare dizzy to line it up. DOH!