Does the "saddle" thingy not need to rest on top of the transom? I guess you would have to drill the holes for the top holes on the saddle, then you could move it up and down ok. If you drill for the middle holes then you will only be able to move the motor up. I would guess having the motor supported on the bolts alone is a bad idea and at least some of the mass of the engine should be taken by resting the saddle on the top of the transom?
I may be being thick. Apologies if this is the case...feel free to slap me