Stator Rotor relationship

Yes, again, better to set the stator in a little than bring the rotor out. Although many will argue that it is a moot point, I feel I have gained some efficiency.

I ran into this same problem when installing a new stator in a '73 750 Roadster I am rebuilding. The motor was in parts and stator missing when I got it so I do not know what the original spacing was. I mounted the sprocket, one thin shim, the rotor spacer and then the rotor. The rotor spacer needs to be installed with the recess facing out so the woodruff key will fit into the crankshaft. When I mounted the stator using the stock spacers (060377 - 5/16 X 9/16 X 1/2), the the rotor was recessed a good 5/16". As suggested in an earlier post, I went to my local Ace Hardware store to look for a thinner spacer. Did not find a specific spacer, but found that a 3/8-16 nut is a perfect substitute. Fit right over the unthreaded part of the stator stud and was 0.3160 thick vs. 0.5 for the stock spacer. Rotor and stator edges are now nearly flush. Took my calipers to be sure I got three the same width. They were also only $0.30 ea.