350 Starter holes drilled incorrectly?

[Gibson]

Been working on this problem for a week, and I'm stumped. Sorry such a long post, but I figured I'd go ahead and list what I've done already. This has all my local small block buddies stumped too.

The short story is: when I install starters, the bendix is too far from the flexplate when at full throw - not the intermesh, but the actual throw on the bendix. As a result, only about a 1/16 to 1/8 of the tip of the starter gear engages the flexplate so it chews the tips of the teeth off.

Here are the things I've checked:

• This is a new build on a block built out by a local machine shop - they also supplied my new transmission (700r4)
• I've gone from a TH350 to a 700r4, but the converter and flexplate are new (converter came with new tranny)
• The flexplate is not on backwards (see photos)
• This block is a 2 piece RMS made between 1968-1979 according to the casting numbers.
• I have the correct flexplate (168 tooth neutral balance)
• I have tried several starters (angled bolt pattern standard type and universal 153/168 tooth straight across mini high torque - specifically a Powermaster 9600x)
• No body shims were installed on any of the starters
• The flexplate appears to be flush to the crank (see photos)
• The bellhousing appears flush to the block as it should be
• With the torque converter bolts out, the converter spins freely and has clearance from the flexplate
• The bolt holes on the block are not cracked

I'm seriously about to rip my hair out. I've read a couple of places that there are blocks out there where the starter holes were accidentally set back too far, but I have no idea if that is true.

Any ideas?

Pictures below (full album at: https://plus.google.com/photos/10266...61803719973329 )

Starter gear fully deployed:


Stater gear not deployed:


Crank to flexplate (flush):


Flexplate orientation: