T/A sensor touching the gear, how bad is this?

I had my Steeda timing adjuster installed a while back and just recently noticed that paint is actually scraped off the gear to the timing adjuster. I know this can't be to good, so I found the flatest washer I could find and put it in between the sensor and the mounting bracket to bring it away from it a little bit. How bad is this? I wish I knew more about things under the hood, but I dont.

The car feels great. It seems to pull strong and I dont hear any pinging that I know of. I have it set at 14* on 93 octane right now, I'm just not sure if something is happening that I dont know about.

I just had it dyno'd today, the numbers seem ok except for the torque seems a little low to me. I just wanted to see if ya'll had any input. This was with all of the mods in the sig, except I dont have the crank pully on with the other underdrive pullies.

Cool, I appreciate ya'lls help. Just to be on the safe side, i'll give Steeda a call in the morning and see what they have to say. There again, if anything was wrong, I'm sure I'd know it by now, but I just wasnt sure if something was going on that I didnt know about.

thanks!