Cam gear sprocket not seating perfectly flush
 

I am placing a new cam gear sprocket on the passenger side cam, but I noticed that with the spacer on it will not sit perfectly flush on the cam. It has about 1/8 to 1/16 of an inch space that still needs to push in. Is this normal or do I need to do something else? When I remove the spacer the cam sprocket will move down further. Any thoughts. Anyone.