i agree pull out your starter and check the teeth on that, its more likely theese are stuffed than the teeth on the flywheel, you can probably check the flywheel when the starters out aswell, but im guessing you just need to swap over your starter motor with one in better condition, as far as moving it closer i guess that would work but its only going to wear out again quikly becuase the teeth will already be rounded at this stage

one guy talked about machining the surface - but he is talking about moving the starter closer to the motor not further backward on the car, if you know what i mean, and i guess this is possible to move it a little bit closer to the motor because there is some clearance there from memory but i reckon all you need to do is get a starter in better nic