I cannot open your picture because I'm on a restricted PC right now. However, the only part on the distributor that could be hitting the push rod cover, is the grease cup. The grease cup is "a cup full of grease" that you periodically turn to push out some grease to lube the distributor shaft.

I think you need to realign the distributor with the #1 cylinder TDC, reset the timing and tighten the clamp.

Good luck,
Dale


When I die, I want to go peacefully like my Grandfather did, in his sleep -- not screaming, like the passengers in his car.
-Unknown-