Over the weekend I semi installed my engine into my MK4. It is a 1997 mustang cobra with a TKO500 transmission. The engine and transmission are in the car but not tightened up to the frame. The issues/ questions I having are;

1. I am having a hard time getting the engine to sit correctly in the frame. It's seems that there is to much space between the frame mount and the engine mount. I am assuming when mounted correctly there should be no space between the engine mount and frame when torqued?
2. With at TKO500 it seems to me that there needs to be spacer used with the transmission bracket. If not the engine seems to lean towards the back of the car. Also, without a spacer the drive shaft yoke does not have enough space to turn with out hitting the frame. Does this make sense?
3. The driver side manifold touches the steering shaft. I understand my engine is not in correctly but once in correct are these two points soppose to be so close?

If anyone has experience with this combo any help would be appreciated.