Re: how much to raise the motor
See if you can picture this in your mind: As the boat is planing it is not parallel and completely on top of the water. It is tilted slightly nose high and moving through the water. Displaced water forms the wake.
So, when it moves through the water it does displace some and after the transom passes this given point, the water tends to replace itself. THUS: water coming off the back of the transom will "rise" some. Exactly how much this rise will be depends upon the type hull, speed,
View attachment 126739View attachment 126740 and how flat it planes. The net effect is that if you set back the engine from the transom, it will effectively ride lower in the water. THUS: You raise it up to reduce drag. There are other factors such as leverage involved but for now, you are primarily concerned with getting the prop at the correct depth in the water. The amount you may raise it varies from hull to hull so no one except a person with your exact set-up can give you an accurate guess.
You may start with maximum raising allowed with the set-back plate or start with the anti-ventilation (cavitation) plate even with the transom bottom and work from there. Raise or lower it one hole at a time. Once you find the approximately correct setting you may want to move the engine in increments and when correct position is found, re-drill the set-back plate to accomodate engine transom clamp holes. Ultimately, for maximum speed you want the engine to not ventilate at straight runs and only ventilate slightly during turns. I suspect that with your set-up, you will not go too high but will end up with the plate about 1 to 1 1/2 inches above the bottom of the transom.

This hull is a flat bottom and although it does not have a set back plate, the engine is at maximum height available with the transom clamps. It is one inch above the bottom of the transom. Note how flat the boat rides and how little the wake is. Even though this boat rides high on the water, this engine can probably be raised another inch but I am too lazy to do it. In the first photo, the plate appears to be even with the bottom but that is an illusion due to the angle of the photo and the engine being trimmed all the way out.