This is hard to understand but reads like your shaft is not moving back or it could hitting the rudder. Without pictures who knows.
If you have all this apart you should at least replace the bellows on the PSS. And the PSS pressure against the its mating surface is usually only enough to hold them together that you could easily pull apart with your fingers.
Best guess you need to do some more aligning maybe even move the engine forward a little bit but, you certainly want to be sure the propeller is not going to chop up your rudder.
If you have all this apart you should at least replace the bellows on the PSS. And the PSS pressure against the its mating surface is usually only enough to hold them together that you could easily pull apart with your fingers.
Best guess you need to do some more aligning maybe even move the engine forward a little bit but, you certainly want to be sure the propeller is not going to chop up your rudder.
