Hotchkis spring installation....

....The measurement I have in the lowest setting on mine is 2.5 inches, so I'd be an inch from stock, so that could be a problem as well. If I put it on the next hole down, I'll be at about 4 inches or so....

Is there more clearance at 4" ? If so, run it at 4". IMHO, you'll need the extra ground clearance anyway. Then, grind some clearance into the back edge of the shackle bars.

...Next check pinion angle when the car is together with the weight (engine) in it.