I used the projector wrong, what exactly am I supposed to do?

So I jumped off my dedicated server and made a small Ion thruster miner. played around and got the ship looking really good for me (about a B- compared to what others make) but something I was really happy with.

I saved my blue print by staring at the connector. then i flew off and took a different screen shot.

I jump back into my survival game, and build a project , ... can't load the blue print because Its a small grid ship. no worries. I make a large rotor, put a small rotor head on that, then build a project. load in blue print, perfect!

Well the projection was intersecting with a bunch of blocks. I put down a 4 button panel and set increase/decrease vertical and horizontal offset.

but it won't let me build it... :( adjusting by 1 , the small amount it lets me, I just can't find a range where I can build it. I tried moving the projection so that it was lined up connector to connector, but that wouldn't let me build it either.

am i not supposed to have my ship image touching the projector? how much of a gap should there be?