Charlie, if the gear is retracted, there will be somewhere near an inch of starter shaft visible between the gear and the starter front plate.  If virtually no shaft is showing, it is in the engaged position.

John - "The Hoosier Hurricane"

I was able to remove and replace my starter with the Bendix drive extended while the car was setting on the ground and working over the passenger fender. It is a '57 Bird, I had to wiggle and find the right spot and an angle to get it past the ring gear but it wasn't too bad. If it is fresh out of the box it should be in the right position unless as previously stated somebody messed with it like connecting a battery to it and spinning it up.

The starter drive is inertia driven to the retracted position, when the engine starts it will disengage from the ring gear and retract.

It will be in the extended position if somebody has monkeyed with it. One trick to retract it is to spool it up on the bench with an electric drill. Is it necessary on the birds?

On the truck engines at least it doesn't make any difference, it will install in any configuration and work fine. Another trick is to break off a piece of pencil lead or two in the grooves and force it back by hand.

Thanks John.  I've heard that scenario.  How do I know the difference from engaged to not engaged?  Someone may have played with it before it was put in the box.  I could compare it with the one I take out, but that one has issues so I really don't know.

Depends on whether you are also installing the OEM starter gasket. I think it makes the job so much harder that dealership mechanics typically left the gasket off. Plus, a new one that hasn’t been compressed yet usually makes starter installation a two-man job.

6 VOLTS/POS. GRD. NW INDIANA

Charlie, don't try to do any "resetting" of the starter drive.  Sometimes in playing with the starter, guys turn the gear and screw it into the "engage" position, and it makes it difficult, if not impossible,  to install the starter on the engine.

John - "The Hoosier Hurricane"

Is there anything difficult about installing a rebuilt 55 bird starter?  After reading and watching various you tube articles, i'm under the impression you need to know how to set up the Bendix so that the starter  will go in easily.  I don't want to risk damaging the flywheel. Thanks, Charlie