Guys, thanks for all the feedback, that really helps. Mo-Cars, I was able to trim some of the casting off of the transmission so that it fit the tunnel just fine. I only had to make one cut in the floor so that the overdrive/lockup switches that I put in had clearance.
After seeing your suggestions, most of them suggesting this is NOT normal, I looked closely around the entire engine to see if there may be any obstructions,and the exhaust manifold was slightly touching the power steering box, and one of the bolts on the a/c was touching the kframe. Just a tiny bit, but enough to maybe hang it up there. So, the engine and tranny are coming back out so that I can do a little more modification to get it to fit.
I also checked with a level on the trans, but I was using the pan as a reference. The trans has to come up maybe 1/4 inch, but that won't bring the motor to level, as it sits, once I get it tucked in there. I'll use the output shaft to check to see if its level when I crawl under there tonight.
I talked to another guy doing an identical build, and he said that his engine was on a slight angle as well, so I think I'm OK once I make a few more modifications. Just posting this for future reference for others.
Thanks guys!