The riser to barrel gap is one place where more clearance is beneficial. Due to surface friction effects, a gap as small as .8" may be much too small. In air flow calculations, there is a boundary layer effectively a half inch or so that has to be deducted from the actual cross section of a duct to reach the effective cross section; .8" - 1/2" - 1/2" doesn't leave much
2" average gap is good, and more is okay.
A 5" system is near the small end of what has been found to work in practice. 4" is the smallest, and is tricky for even experienced builders to get right. 6" is a reliable common size that works well if done even close to right. 8" is a common size for heating a whole house in a climate with real winter.
What is your purpose for this heater, and what is your space, insulation, and climate like?