Perhaps nothing wrong with the top bushing! Centre Shaft could be moving up and down. You might need to shim it. Pull the gear off the bottom and put shims in between the gear and the housing to limit the upward movement.
I get the shimming the bottom but there must be something missing on top to keep the pickup and star wheel from contacting? And it's imposable to get a bushing kit ,, guess ill find another distrubirtor and see !
It would be nice to know where to get bushings for distributors.
I think you are correct in assuming the bushing is worn , that would be the only thing I could say that would crash and crunch the reluctor against the pickup. I have seen that before, but replaced the dizzy as no bushings were available.
Maybe some one else here will know where to buy them.
Found them.. Go to Corvette Central, type in to the search by part number this number #272160
It is the bushing kit for a 62-74 corvette. I read somewhere for the standard GM points dizzy the top bushing will need to be cut down.
Still looking for a direct replacement. Later
Years ago I went to the bearing supply house off Central Ave. in Orlando and the counterman measured the top bushing for me and matched it up, no problem. So they definitely do exist, shame I didn't think to write down a part number.
That said, finding a different core might be the easier way to go.
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