Drive Shaft Length Help

I believe the correct way to measure is bottom out slip yoke inside trans then take measurement center of u-joint cap to u- joint cap. You should be able to bottom out slip yoke then have to slide it back an 1"- 1 1/2" before seating in the pinion yoke.

This is the way I would do it having done plenty of them.
1 inch with the car sitting on the rear end would be pushing it a little, but if that yoke will slide in at least that much or more you should be ok. (and I believe it will since that boot will collapse and I know for a fact the yokes go that far in as to make them collapse.)
Like mentioned by the Riff Raff :D, 1.5 would be about perfect, but I have also seen people get away with just barely enough to get the rear U joint in the yoke.