Here is a discussion and photos from a few months ago regarding the spacer.
https://packardinfo.com/xoops/html/modules/newbb/viewtopic.php?post_id=104597#forumpost104597 The hole is mid to upper third on case so think it might be slightly above the normal oil level just sitting. If uncovered, oil could probably get thrown out when driving.
The solenoid should at least make an effort when the wire size is sufficient. If not, check continuity between each terminal to ground to rule out any coil issues. 3 should read a low ohm range -- less than 5. 4 should almost be a direct short. If 3 is open, that is a problem. If 4 is open check the internal contacts. Those tend to pit and need occasional service. If those are good, then a problem.
The relay is going to be the next item. It is special to the R9 and getting harder to come by on a parts car -- or somewhat expensive when you buy it new. Unfortunately, unlike the R11 a common power relay from the parts store can not be easily substituted on the R9 setup.
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