OXA Tool Holder and Cutoff Bar Woes

It’s difficult to diagnose a situation like this from a distance with just photos and no dimensions (and without having familiarity with your machine). Hopefully someone nearby or at least with the same lathe can step in and help.
 
If you like that size you may need to skim the bottom of your tool holders to drop them a bit more and free up some adjustment room.

Or, you could skim off the top of the compound... that seems oddly tall.!

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Be forewarned those style of parting off tool holders are dangerous.
When the tool digs in, it will shoot the parting off tool out the back of the holder like a gun.
You don't want to be in the firing line.
 
Be forewarned those style of parting off tool holders are dangerous.
When the tool digs in, it will shoot the parting off tool out the back of the holder like a gun.
You don't want to be in the firing line.
Thanks for this. I had no idea. What style would you recommend instead?
 
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