Thanks,
I have a 2" body lift as well along with a 5 1/2" susp. Mine is hanging down lower than I would like, but it's a compromise. With keeping a relatively stock 94" wb, the rear DS is only 22 1/2" long. I have the 14 bolt clocked to point the DS at the output shaft of the 205. I'm running 1330 CV head that has been clearanced to 35 deg. and my rear axle on drop out binds just before the CV head does.
This is something I would like to change, one of the only things. My rear doesn't flex as much as I would like, when I correct this I will probably use a limiting strap to keep the center of the rearend from dropping out too much and binding the CV head. The best solution is to by a expensive CV that will have more flex, I just can't justify spending that kind of money on it right now.
To answer the question, mine 205 probably hangs 2 inches below the frame. My rear crossmember protects the 205 and I have only been hung up on it one time and have been wheeling it that way for 3 - 4 yrs. I can push mine up the 2" with not interference above the t-case, I'm on the fence on doing so and just strapping the rear. EFI is my next priority!
David