I can also confirm that the lip on the "button holder", or whatever it's called, does not sit flush with the front of the cam. As long as it is fully seated, you are good to go there.
In fact, to give you some details on my screwup (alluded to in in post #25 that Reaper posted the link to), I was trying and trying to get some end play and every time I bolted the timing cover on I got nothing - cam was obviously touching the timing cover, because it would not budge AT ALL. Not realizing it was the timing chain that was making contact with the inside of the cover, I had all the shims out, tried to drive the button holder in deeper, and so on. In desperation (should have searched the board first, but in my defense, I had installed a roller before with this same setup and not had any problems, so I felt like I knew what I was doing), I pulled the button holder out of the cam, zapped some of the back off so it would sit deeper in the cam. Reinstalled it, still no endplay. So did it again! Got it to where the lip sat flush with the cam, and still no end play. That's when I hit the board and found out about the potential timing chain issue. Zapped off that tab, and hey, now I have like 1/8" of endplay. Crap!
So then I had to make some shims to put behind the button holder to push it back out to where it had been in the first place. What a fiasco!
So don't do what I did. If you are having to double gasket the timing chain cover to get enough endplay, then I suspect you are running into the same issue I did, where the timing chain is contacting the little tab that is on the inside of the timing chain cover. Check it out and see.
A final note - I spent some time moving the cam back and forth without the timing chain cover on, and watching the dial indicator, and developing a feel for what the proper endplay looked and felt like. Then once I had the timing chain cover on for good, I could pry on the cam and see and feel that it was right and not have any lingering doubts that I had too much, or not enough, end play. It was a comforting final check.
John