I feel for ya. I struggled with this for a touch - 72 Lemans, TH350, column shift car. As a column shift car, I had no options if I wanted to put the car in drive. I threaded one side of the pivot shaft with a die so that I could use a combo of nuts and washers to space the pivot shaft away from the header (Hooker). It worked, but wasn't ideal. I eventually dumped it for a B&M shifter that has the NSS and reverse lights integrated into the shifter instead of on the column. In fact, I just got in from further modding the main lever on that shifter - I had to shorten it even more to miss hitting my dash (bench seat, shifter on floor). I wish now for your sake I would've taken a pic or two.
I have used a Flaming River external NSS/Reverse light switch that mounts to the tranny pan and operates a detent switch. But with that you can get one or the other, not both. That would be a less irritating solution.
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"...ridge reamer and ring compressor? Do they have tools like that?"
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