Right! The engine doesn't need to move at all. No reason to loosen the front engine mount. It's a clearance issue from the bottom of the transmission to the top of the engine block shelf. The spacer is in the way and must be removed - I've tried it with the spacer in and if the switch was one or two threads shorter, it could be left in place.
Wanted: Dead, smashed, crashed or trashed gauges
BMW GAUGE REPAIRS - TACH*SPEEDO*CLOCK*VOLT METER *PODs & LIGHT BOARD*