Did you install a new oil pump shaft?
I have found on the last two motor rebuilts I did for 94 -95 5.0's that the melting IM68 oil pump shafts has it's retaining clip about a 1/8" too high and the bottom of the distributor shaft bottoms out on it.
On the first case removed 1/8" from the bottom of the distributor shaft and it worked out fine. On the second one I was looking out for this issue during assemble and found it to be the same. I lower the retainer on the shaft by putting it in the vise and tapping the retainer's teeth with a screwdriver and a small hammer.
If this is your case also, I would force the distribuutor down, It would result in extra wear and play in the oil pump and/or in the distributor.
I have found on the last two motor rebuilts I did for 94 -95 5.0's that the melting IM68 oil pump shafts has it's retaining clip about a 1/8" too high and the bottom of the distributor shaft bottoms out on it.
On the first case removed 1/8" from the bottom of the distributor shaft and it worked out fine. On the second one I was looking out for this issue during assemble and found it to be the same. I lower the retainer on the shaft by putting it in the vise and tapping the retainer's teeth with a screwdriver and a small hammer.
If this is your case also, I would force the distribuutor down, It would result in extra wear and play in the oil pump and/or in the distributor.