Cut the shrouds like your last pic, cut the slits out the top and bottom, and smoothed them down, put the silicone washer inside and was able to move it back almost all the way, looked inside the housing there is a little nub for the stock bulb, I cut that off smooth, silicone washer now sits flush and I'm able to tighten the nut to get the bulb holder screwed into the projector bulb... Thanks a ton man!! I'd post updated pics but I'm too tired from welding all day...