Ok i have a .8mm washer glued to an old sensor. When i pulled off the speed sensor, there was a thick washer between the speed sensor and the housing. When i set the depth, do i keep this washer in place, or remove it and set the depth without it?

 

When the set screw is replaced for the reference sensor (front) it's sometimes not set to the correct depth. When this happens you have to shim the speed sensor (rear) to compensate.

This means you have to bring both up under where the sensors mount and measure them. You can make a simple depth gauge out of a wood dowel and a piece of wood. This way you can probe each in turn and find out why the washer/shim was put on.

Or you can just accept the washer/shim and use your "gauge" with the shim to check the depth at the fly wheel teeth.