First off, I would not use an electric starter on a Fox 35 or other similar engines. Doing so can cause the end of the rod and/or crank pin to rub against the rear cover with great force which can produce burrs. Metal shavings in your Lil' Doozie wonder engine is not a good thing.
As for the crank slop and how it effects engine running:
I vaguely recall from my years at Fox Mfg that the engines had an ever-so-slight over-square between the bore-to-crank center lines (side view). In other words, instead of it being a perfect 90 degrees, it would be something like 90.01. (Figure used for illustration only.)
That way, the act of running the engine caused an ever so slight forward movement on the connecting rod, which gently pushed it forward against the machined area for same on the rear of the crank disc/counterweight.
With a nigh 90 degree machining, the connecting rod would work back and forth on the crank pin, which increases vibration and wear on the connecting rod.
Less than 90, and the connecting rod would move to the end of the crank pin and in some cases rub against the rear cover in some circumstances, which is also a totally undesirable situation.
All of this machining on the case was done in what was called "Second Operations". That is where the raw cylinder casting started through the processes of "Second Operations", and at the end of the line was ready for use in the Assembly Dept. The "Second Operations" department was critical to the goal of producing a dependable engine with a very good service life.
I also vaguely remember Jay Davis (the Second Operations Manger at the time) bringing me the first samples of new cases that had just been put through all the processes for me to assemble for testing. To do this, I would hone the nose bearings on the the case, or cases if more than one, and then using assembly line parts, assemble an engine. Once assembled I was off to run the engine(s) in an abusive manner (cut-down prop w/high nitro to produce more RPM than the engine was designed for), as well as over-propped (to produce heat.). If the engine(s) passed muster on the test stand, I would then disassemble, and inspect for issues. If all looked good, the line was fired up and cases started passing through Second Operations.
Andre