232 Starter/Flywheel problems

I'm having a problem with the engine in my '71 Jeep DJ5. It has the the 232 six in it and I'm having a problem with starter and or flywheel. I think the engine is original to the vehicle but not sure. The casting number on the side of the engine is 3213867 and the date code on the other side is 406E25. Going by what I read the engine looks to be a 232 built on 6/25/71. The transmission is the BW T35, the PO said he had the trans rebuilt. He also for some reason changed the bell housing, it bolts right up the the engine fine. the only thing that is not good about that is when I go to get a new starter I have to change the nose from the old starter to make it bolt up. Not sure what bell housing he is using. I also think they put the wrong flywheel in because when the starter is engaged the pinion gear barely reaches the flywheel and just spins. It seems that the nose of the starter needs to be longer or the flywheel needs to be closer for it to spin the engine. I know very little about these engines and would appreciate any advice or help about getting this thing started.

It's a postal RHD Jeep so it's on the passenger side

Ok, sitting in the jeep the starter is on the left.

That's it

A 350 in a postal Jeep would be hard to handle, though it's been done. If I were to change drive trains I'd go with a small, modern V6 or even four. Easy to find a decent Ranger or S-10 2WD, then change everything out. Just need to have a driveshaft made. Or to keep it all AMC use a 2.5L from a 2WD XJ Cherokee or Dodge Dakota (Dodge replaced their 2.5L with the Jeep 2.5L for 97-2002 models). Of course a 4.0L would be nice also...or just a 72+ AMC six and trans (they used Chrysler 904).