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To correct the handle hanging after recoil problem, all I did was remove it from it’s mounted position, hold it very tight and turn the starter by hand to use up the excess rope until the starter is butting up against the inside of front of the motor housing. Now, holding it very tight I pulled it back against the tension of the spring to its mounting position and then mounted it, under tension. I then bolt it and yes, the center bolt has to be tight.
So now, when not in use the starter is still under a little spring tension so it recoils all the way back and the handle gets stopped by the front casing of the motor. No more excess rope.