After a lot of research, hands on measuring and calculating I believe I've resolved the issue. The transfer cases 244 and 233 have different output shaft positions. The Rancho kit stated that it wouldn't work with an AWD case but, I never could get Rancho to tell me why. I actually caused all the issues lifting the truck. I'm not interested in un-doing everything anyway. Now I know why it wouldn't work without modification.
fishy68...The AWD transfer case NP244D was optional and a part time NP/NV 233D was standard. AWD worked wonderfully until I lifted the truck in 2006. The TCCM (trans computer) doesn't care which transfer case it is as they both operate within the same ohm values from the selector.
I hated to give up the AWD but, there isn't anyway to clock the front axle or transfer case unless I make custom brackets etc. A side by side comparison of the 233 and 244 case reveals different companion flange positions. The 233 is clocked a little lower and the companion flange is lower. This makes for a nice angle on the prop shaft. I went to get a new prop shaft, I was offered two and took the one with u-joints. Thanks for the suggestions.