In a perfect situation the gear DOES ride on the Pad, with about .010-.015 end play ( pushing up from the bottom ) , its not designed to be constantly pulled down , if it is, it will wear out the top of the Dist bushing , i would set up a dummy dist with the gear at 3.050 at maximum depth ,( i prefer the MSD spec I've verified it with a block and its the easiest way to measure ) I would measure the distance to the worn area of the block and make something to replace the worn area , some type of spot face tool would make a flat surface then perhaps a flange style brass bushing inserted in the hole , this would of course require a complete disassembly of the block , but a good machine shop should have no problem doing it