XJ Dana 44, binding drive shaft

Just installed a Dana 44 out of an 87xj Wagoneer donor into my 87xj Cherokee and the drive shaft binds up and won't turn when suspention is at full droop. My xj has an OME suspention with about a 2 inch lift(springs and shocks). The drive shaft is 31 inches long, 5/8 inch shorter than the stock one that was connected to the original Dana 35 and was taken from an early 90's xj with an 8 1/4 inch corperate axle. Drive line angles at normal ride height are as follows; Transfer case output 3 degrees down, drive shaft 13 degrees down and differential pinion 3 degrees up. The way I figure, this equates to 10 degrees at each end of the drive shaft U-joints, which I guess is excessive. I thought I would try a 1 degree shim at the spring mounts to point the pinion up a tad higher and maybe a couple of washers under the crossmenber to point the Transfer case down. Request any suggestions, pointers or smart remarks.

YJ slipyoke and you're all set. or you can grind the XJ slipyoke where it binds. I've done both and they both worked well.

Rev up the grindah