Low water at pump

[BigDave]

Sounds like they gave you the wrong skimmer basket. In mine, there's plenty of room for the water to flow through the sides. I'd ask the vendor to at least verify, hopefully correct. Is some of the water bypassing the basket now that you've put in spacers?

[PoolDoc]

Dave is correct: either you have the wrong basket, or it's VERY bad design. I'm guessing you have the wrong basket.

Oops. One other possibility: baskets are held in place by ledges or protruding steps. If whatever SHOULD have held your basket elevated above the outlet is damaged, that could also cause your problems.