I turned the pickup in to snug enough to stay put and the pan fits over it. Looking through the hole I could see it but not much else. Since there was no gasket on it and I'm using a rubber gasket that seems kind of thick, I was honestly kind of hoping the pan would sit on the pickup and not the pan rails.
If memory serves, that 1-piece rubber gasket is intended for Magnum 5.9L engines, so double-check its fit before you go too crazy. I believe there's an area in the rear that requires a copious amount of sealant to fill in the gaps, as the rear main cap is different on the Magnum design. I may be thinking of the 318/340 gasket, though. It also may apply to both.
I'm going to try taping some coins on the pickup to try to figure out how close it is to the bottom. Measuring the pan and then the pickup looks like they're basically the same - about 7-1/4".
I picked up a block of non-hardening modeling clay at a hobby store for a few bucks for stuff like this. I bought it to check valve to piston clearance on my 340. That was about five years ago and despite sitting out in the garage in torn plastic the whole time, it's still soft and usable. You can use Play-Doh, but it'll harden after a few weeks.
It's a factory pan "392" with replacement pump and pickup from Melling.
The pickup didn't change from 1970-'74 on LA engines (and indeed goes back several years prior) but it's hard to say how accurate the Melling is in duplicating the original. I've bought pan/pickup sets in the past and still not gotten the desired interference.
FWIW from the 69 FSM I mentioned as a 73 earlier:
Installation (1) Inspect alignment of oil strainer. Bottom of strainer must be parallel with the machined surface of the cylinder block. Bottom of strainer must touch bottom of oil pan.
Yep, that it does. Then the Ramchargers and other factory racers wrote the Direct Connection Engines book and recommended a small gap beneath it, at least on big-blocks (with a longer pickup, no less). Would that affect 100K-mile reliability? It's possible, but there are thousands of air compressors out there with cast-iron plumbing on them, working several hours daily, that never crack the outlet pipe. Was every oil pan and pickup checked for clearance during assembly by Chrysler? I'll bet not. Maybe that explains some of the warranties they obviously had to do over the years. I can't say, but my '73 340 had OE cigarette butts stuck to the
bottom of the pickup. It went 140,000+ miles and never suffered an oil-related failure.
Can the pickup head be twisted on the tube? I doubt it, but that might help a little bit if it's very close.
What I'd suggest is installing the pickup until it's not quite snug (it might be rather loose due to the nature of pipe threads), but is parallel to the pan rail. See if the pan sits against the pickup or the rail. If the loose pickup doesn't hit the pan, it certainly won't once it's tight. If it does hit, apply your thread sealant and go one turn further. Live with the results.
You can sweat this forever and try bending the pickup or denting the pan. Just remember: Never bend the pickup by pulling on it while it's installed in the pump. Threads are stress risers. If the pickup's going to crack, it'll do it while bending in a spot you can't easily see. You probably won't feel or hear it happen, either (it's worth noting that on a B/RB engine, you run the risk of cracking the block rather than the pickup). You'd want to put the pickup in a vise and bend it with a length of larger pipe. You could also cut the pickup, install a sleeve at the right height, and weld the sleeve solid. Make sure it's airtight, though.
I just don't see how I'm going to affect how deep the pickup is.
If it's going to keep you up at night, you could try stacking Schumann dead-soft copper oil pump gaskets, but they're extremely thin (around .016" I think). Nobody makes actual LA oil pump spacers near as I can tell, leading me to believe it's not nearly the issue you believe.
Also, the Permatex thread sealer is also a thread locker. I guess it will work, even though the package directions seem oriented toward things like power steering and transmission lines. It will kind of be in the oil, I'm unsure if the oil is that deep or not.
That seems like the answer to your thread-sealant issue. It should be impervious to petroleum-base lubricants.
I find the bit about power-steering and transmission lines a bit strange since those usually use inverted-flare or O-ring seals, both of which have straight threads. Typical thread sealant (PTFE) is worthless on straight threads, which is why Chrysler used studs on exhaust-manifold fasteners drilled through to water. The seated stud shoulder seals somewhat like an inverted flare fitting, and the usual recommendation for better sealing in those applications is high-temp silicone, which nobody recommends for NPT.