Agreed. Raising the engine is only going to create more problems. You need a certain angle to keep the pinion angle correct. You want really no more then -3 to -4 degrees tilt to the engine. Raising the engine is going to throw the whole shabang out. Just get a FR steering rack and call it a day. Or go get some double d shaft and some knuckles at the local hot rod shop and make your own.
That'll probably be the ticket. I'll need to shake in there and verify the size of the spacers that are in there now then go maybe 1/4 inch additional on the plates. I'll also likely need ot order some longer bolts.
I did the flaming river steering shaft on my 5.0 when i did my longtubes. I had to grind the ends of the screws to get some clearance. I'll see if i still have the pics.
Under your dash near the steering wheel there are a couple bolts that you can loosen and move the steering wheel ever so slightly toward the side you would need clearance on, it may help out.
Sure enough... I loosened the screws for the steering column and wedged a broom handle in between the header and the shaft. I took all the nuts off and coated the stud threads with blue locktite and reinstalled and cranked the crap out of them. I now have about 1/4 inch of clearance between the narrowest space between those two parts.