If the converter spins freely as the trans is bolted up , you are OK.
Your photo does not look like a 1/2 clearance. Looks like less.
1/2 inch is too much pull out from the trans to the flywheel. Should be around 1/8 inch
Some people are like Slinkies... Not really good for anything, but they still bring a smile to your face when you push them down a flight of stairs.