Buy something like this to fill in the gap.
SNOW BLOWER IMPELLER KIT™ - 1/4" 4-Blade Universal - Modifies 2-Stage Machine | eBay
SNOW BLOWER IMPELLER KIT™ - 1/4" 4-Blade Universal - Modifies 2-Stage Machine | eBay
Here are 5 pictures. After using a tape measure it looks like he gap is actually about 7/8 from empeller to housing at the 9:00 position
When throttled up all the way (dash reads 582rpm) the snow is barely thrown out of the blower and just seems to puke out the top.
I'm wondering if the blower is setup for a 1000 rpm blower.