I'm with Flyin on this one, if its going all the way to within 1/4" the clutch splines themselves are already engaged on the input shaft, but if the clutch plate is off center even a little bit then it won't want to seat into the pilot bearing. If its been tightened down enough to strip out threads then its not the backing plate binding on the axle that is causing the problem, though that is usually a point of trouble when reinstalling an engine with the axle in. I always notch mine about 1/4", just to make things smoother for installation.
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