Are there supposed to be some spacers or washers that go between the tailstock and the transom plate to allign the motor I dont remember taking any off but that was last October, and I could have easily forgotton

When I look through the gimbal at the tailstock from the outside of the boat, the tailstock seems to be sitting way lower than it should be

Any suggestions?

Yes , there is a leather like material with a split/spring washer in the centre that goes between the bellhousing & transom plate. Hope this helps you out. Check Bam's Mercruiser parts section & you will see what ya need.
John

split washer goes on top of gimbal inner plate, tailstock sits on top of this washer. Leather washer fits around outside of split washer

alignment tool in place, raise/lower front of engine for alignment.