The spacer is just that,a spacer. It allows you to use a 700 with the stock output shaft(27 spline, IFRC) with a th350 version 205(also 27 spline) and the stock coupler and adapter. If the output shaft you originally posted about is the one from Advanced Adapters, it is just a shorter version of the 27 spline original shaft.
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i have a 205 that came from a 465 it has the corse 10 spline
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As far as I know there is nothing readily available to hook the 10 spline 205 to a 27 spline 700. th350/205 was a common factory setup so people just use one of them rather go to the trouble of adapting the 1-other.
If I were you I would just use a 208 or 241 unless you are dead set on a 205. If so, you could probably trade your 10 spline for a 27 spline version. Or better yet,just buy the 205 and adapter from Bigdaddyof2. /forums/images/graemlins/waytogo.gif
This topic has been covered here a couple times, try a search. You might find the answers to most of your questions that way.