A distributor gear being "a little loose" is like being a little bit pregnant- - - -things aren't going to get any better, and they can get worse in a hurry. You could drill the drive pin out and go to a slightly larger one to cure the sloppy fit. I'd very much prefer an original equipment GM HEI distributor to a Chinese knockoff, even though a minor amount of fitting has to be done to make it function correctly. Stay FAR away from conversion kits to eliminate the points, such as Pertronix. They have expensive proprietary parts that will leave you stranded for a long time after they fail at the worst possible moment. Untold millions of point-type distributors worked well for decades. Why mess with success, especially on a vehicle that's only going to be driven occasionally, not in every day service?
Jerry