Yeah that's very close, it actually looks perpendicular to the floor or vertical to the bass drum head which in turn will not give you that much of a throw or energy when playing.
I mean it's not wrong to have it that close, if you want light strokes or don't want to be too loud while playing that would be fine I suppose but you really want to lean that beater back a touch more when playing a little more aggresive. That setting you have now would bother the hell outta me because there would be nothing there, no power to the stroke and no rebound LOL!
Also if you have the spare change, get yourself a falam pad. It will extend the life of your bass drum if you start to play harder. Also you're very welcome man, hope to see you bump this thread with good news about that beater adjustment!
http://www.guitarcenter.com/Remo-Falam-Slam-Pad-Kevlar-Double-Bass-Drum-Patch-101335222-i1165911.gc
David