converting 1967 camaro from manual steering to power steering

Maybe you have the wrong PS bracket or pulley. Spacing the crank pulley is not a good idea.

Agreed ☝

Almost all of the power steering kits available will require some alignment to get the belt to run true. There are very minor differences in pulley size between those available for the small and big block Chevrolet. Even the big money March billet kits that come with everything you need down to the fasteners will require shimming to get the belt alignment right. There are just too many variables. Harmonic balancer depth. water pump casting issues. and block mounting hole placement. You should never space the crank pulley unless you are using a spacer made to do that job. If your alternator belt was in alignment before you added a spacer, then your crank pulley should have been where it needed to be. There were two different power steering pumps for Small and big block Chevys The press on pulley type and the bolt on type. Both pumps take their own pulley set. Crank and pump. If you are using the press on style. You will need a crank pulley that was meant to work with that pump. Also the pulley might not be pressed on far enough. That's the most common problem with belt alignment. If you are using the bolt on pulley saginaw style pump. The pullley needs to be seated propperly and the shaft key must not bind in the keyway. this will cause the pulley to not seat all the way back onto the shaft taper. If an improperly installed pump pulley is not the problem, You likely have a mismatched crank pulley.