Rear end higher than trans output...okay?

[Lonnies Performance]

There is no problem with the rear being higher than the trans as long as the angles are similar.

You have the angles pretty good now, you can lower the pinion close to an additional degree without much issue... most do this to account for torque reaction under load.
This will give you more floor to pinion clearance. I would guess you need about 3" of suspension travel under compression from ride height.



As you get your trans closer to level (most shoot for about 1 deg down, but with a low car, level would be preferred), then you can correct the rear so it is a similar angle.

I had a similar issue with my Firebird... remember you can possibly lower the engine slightly instead of raising the trans, so look there as well.