I would want to know if Jerry thinks 1/2" is OK.
Engines (and cabs, and frames) do a lot more moving around than most of us realize. With the right combination of torque, road surface, trailer pulling, and/or panic braking, it wouldn't surprise me to see a broken distributor cap with only 1/2" of clearance. I've seen dirt track cars with a well-braced roll cage get enough frame twist off a corner to lift the left front wheel a couple of inches off the ground when the driver nails the throttle. I'd be a lot more comfortable with 1" of clearance or a bit more.
Jerry