I'm going to have to arrange a sticky on this for the forum...or get them to generate a new section.
Nate,
170-200 for new is about right. The ebay one is a bit dear at 188 plus shipping. I paid 150 for a NEW one for my patrol, but it is slightly different to a 'mustang' one.
Mustangs actually never had a spacer, they have different pinion housings, and looking at yours, and having driven the car, yours has the correct housing. The difference lies between where the housing mates to the sandwich plate, and the main case (black) of the starter housing.
If you call steve lond at mustangs of melbourne, tell him what you have, he will have one on the shelf with the correct pinion housing.
As suggested, inspect the ring gear for missing teeth, and major burs. Any burr that really sticks out, take to with a file carefully, and keep in mind its a 'patch'.
You don't mention if the starter is actually spinning and failing to engage, or simply not spinning. If its failing to engage, i'd look to lubing the pinion shaft, which is a common fault.
Cheers
Jas
PS. your email is still in the deal with box, just been snowed under with 10:30 pm knock off times.