Sorry, I think I didn't explain it very well. The gap is there because the handguard cap that was once there is no longer there. The FSB is perfectly lined up, if I move it farther back, the pin holes will not line up with the barrel cut outs. In the photo, the FSB is exactly where it needs to be. I don't want to fill the gap between the rail and the FSB. I want to fill the gap between the thicker portion of the rail and the FSB. The little gap that is making you think the FSB is not seated all the way back, is the very gap that I want to fill. It is the thickness of the handguard cap (less than 1mm).
Just to better explain it, here is a picture with the FSB as far back as it will go. The pins will not go in with the FSB in this position. As this is an LMT, the barrel is not parkerized under the FSB. And you can see that in this position, the unfinished area of the barrel is showing. The FSB must be positioned as it is in the first photo. Sorry for the confusion. I didn't explain myself very well the first time.