Hey Guys,
On my 94 lt1 if I click the ignition the starter bendix drive
gear engages the flexplate as it should. However I notice that if I just click the ignition on and off without starting, the small gear does not retract. If I move the flexplate manually it retracts. Is this normal? Hard to see if starter gear is engaged when engine is running. Also tried various shims. Same results.

 

After starting flywheel speed overides bendix speed and it retracts.

 

You do need to check the clearance, but it's hard to do with a stock starter. A bent standard paper clip is close to the required clearance, and might work.

Courtesy of Shoebox

http://shbox.com/1/starter_gear.jpg

 

Thanks, will try that paper clip

 

And the engine starting does kick the starter gear out of engagement as noted above.