Ok everyone I had a earlier post of driveline rotating and finally think I figured out why the drive shaft is sitting lower. Was trying to figure out why front drive shaft decided to start rubbing on the transmission crossmember in the u shaped area. Well after looking hard at it, it looks like there is a difference in the extension housing. I installed a used transmission from a same year vehicle and just bolted the 233c transfer case to the other one without changing extension housing. After looking hard it put the transfer case in a different position rotaing it up another 1 1/2 inches so now gotta pull transfer case back out and do that part of the job again. I dont know why the extension housing just has a slight difference because came off same year and was a 4 wheel drive also. Anybody got any thoughts on that.

 

Sounds like you have found the source of your problem. Still doesn't explain why it took so long to show up, but there were a few different adapters used depending on which transfer case you had.