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My distributor has about .025 play in it with the factory installed shims. It is a point type distributor. I have watched the timing "float" about 4* while at maximum advance. Has anyone shimed these down to say .005 and had good results doing this?
I did the exact same thing on my HEI with good results. Make sure that the distributor is not bottoming on the oil pump drive by testing fit without the gasket to the manifold as well. if it bottoms you will need shims under the distributor as well. The latter is usually not necessary unless the manifold/heads have been milled for more compression.