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Barry, first off I'd replace the retaining plate. Once they start to wear at all, it gets worse pretty quickly.
The spacer ring normally floats on the cam nose. It's the timing gear that clamps it firmly into place. The ring is about .003" wider than the plate, so with an unworn plate you have .003" end play on the cam -- the difference in widths is all that determines that. Once you have any wear on *either* side of the plate, the end play is out of spec. Excessive end play is one of the things that eats cam lobes and lifters...
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