That starter should have no problem cranking the engine, provided the timing is correct.
Have you tested for voltage drop in both the + (insulated) and the - (non-insulated) side of the circuit?
Take a VOLTMETER set on the 3 volt scale, or whatever scale will accurately read to the sub-one-volt range.
Insulated side: Connect the + lead to the + battery post. Connect the - lead to the main, heavy + post of the starter (where the battery cable connects). Disable the ignition, and have someone crank the engine while you read the gauge. Anything over 1/2 volt is bad news.
Non-insulated side: Take the + lead, and connect to the starter case. Connect the - lead to the - battery post. Crank again--same deal, anything over 1/2 volt is bad news.
Repair the insulated or non insulated circuit as needed.
Connecting the voltmeter as I've described forces it to act as a "high current ohmmeter". Well, George is going to have some issues with the terminology, but basically you're checking the resistance of the circuit while it's under load, which a regular ohmmeter can't do.
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