Depending on whether you have enough drag, you may be about where you need to be right now. As Joe up there said, moving it closer might help, but it is hard to say for certain. More drag might bring the mark where it ought to be. If you aren't getting a fairly loud howl from the ring/pinion, you may be about okay. I can't say about the pinion bearing, though. I'd need to see & feel it.
