Crank sensor clearance

[iTurbo]

Recently I was reading Alan's thread about having adjustable ignition timing on a TIII motor. This got me thinking about crank sensor clearance to the flywheel. The trans in my car is an A568/A523 hybrid and I think the case may have come from the A523 and was modified to accept the TIII crank sensor. If the case wasn't machined properly and the crank sensor sat a little too far from the flywheel, what would happen with regards to the way the engine ran? Or would it run at all?

I have had a weird low RPM stumble/hiccup in my Spirit R/T since installing this trans, although lots of other mods were done at the same time. Sometimes it is bad enough when I let off the throttle it surges and bucks similar to an overboost cutout as if the engine just shuts off for a split second. I also get a random code 41 (?) which my scanner says is an issue with the ignition interface. Whatever that means?! Any ideas?

[Lotashelbys]

Jeremy
I noticed that 91+ cases have some extra "after casting" added to them that was machined down for TIII cars with crank sensors. I have drilled 3 cases with my little jig I made and 2 of them I had the grind off some of the casting. I just measured with a caliper a true R/T trans how far the sensor stuck into bellhousing. Got mine within a thou and both have ran great. I had a 90 523 case that looks like that extra added aluminum is not there and that worked just by drilling it and bolting the sensor down. All 90 cases I have seen are like that.
I would say you should grind it down to be as close to a stock one as possible. Being too far away might not get enough of a reading for you. It might be getting too weak of a signal or something.