Well, for some reason the fan was hitting the damper face and I do not know why. I did change from a single to a double pulley to add A/C later. I checked the height of the single vs dual pulley and it was exactly the same. I am running the aftermarket dual damper from Mike but not sure if that was the problem. I located a 1/2" spaceer at Loper's Speed Shop and will put that on for now. I am going with an aluminum 2 core later.
What is strange here is that I pulled the dual off of a 66 Mustang 200. The fan blade is off of my 64 Ranchero V8 but it has the same configuration as the 6.
Anyone reading this thread that has a dual pulley setup, please chime in and let me know if you are running a spacer or not please.