I replaced the fuel filter on my 97 Camry 2.2L today. I used a purolator brand filter and everything seemed to fit fine except the bottom flare nut fitting.

It seemed to bottom out before all the threads were in. I started the car, drove around it there were no leaks. Is it normal to have a gap of threads at the bottom of the fuel filter line/nut? I don't recall if the was like this on the old filter I removed.

 

That is quite a few threads showing there. That being said, you did the right thing and did not start reefing on it.
I would keep a close eye on it and check how tight it is often in the near future.