... if you were to take the bell out of the mix everything lines up - spacer plate , starter to crank . the spacer plate seems to be smaller than the bell.
Ah, then there is your issue - not the starter. The block plate (spacer plate), flex plate, torque converter and bellhousing must match each other. From "spacer plate seems to be smaller than the bell", I have to assume your bellhousing is of the larger type (164T) and your block plate is the smaller one (157T). Here's the big problem:
- Is the flex plate and torque converter 157T or 164T? If they are 157T (which uses a 10.5" bolt-circle converter), then you need to replace the bell to match the rest.
- If they are 164T (using a 11.5" bolt-circle converter) then you need a new block plate.
Note that the two flex plates cannot interchange converter type (except with a custom aftermarket version). To avoid spending the money on the wrong part, you need to identify all four parts, and replace the one that does not match. As I don't know what you had before (likely a 157T setup in 1968) or what the trans shop supplied, or if those parts matched, then I'd start from scratch and figure it out myself. Then I'd go the the trans shop and have them exchange for what
you know you need at no charge.
David