Don't think the outer switch should be zig-zaggy and bent like that, both blades should be straight out parallel to their stack, and with the points closing after appx. half its total travel. If you aren't already (can't see from the vid) you want to check the travel by activating the coil plunger and not the lever. My best guess is messing with that gap may make the problem better or worse but is not the cause of the problem.