I believe the correct position is 1/2 inside - 1/2 outside of the shroud. If the fan is all the way in the shrould the gap between the edges on the fan and the shroud is bigger --- closer to the radiator doesn't make any real difference.
Just add enough spacer to put the fan 1/2 in - 1/2 out of the shroud. Barely fully inside the shroud is OK too.
And whatever you do make sure you don't get your fan too close to that radiator - especially with a flex fan. First time you rev it up that fan could flex right into your radiator.
E85 racer and E85 carb builder
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68 Camaro, E85 powered 427" small block. 9.96 @ 133 MPH, 1.319 sixty foot on motor. 5.92 eighth @ 116 with a 1.42 sixty breaking beams with back tire on the bottle