hmm interesting... I thought the ride height would affect cv angle but not the front driveshaft angle. I could see how it would affect the rear driveshaft angle.

 

Chassis ride height affects both CV joint angle and pinion angle. Tires are always on the ground which means the differential pinion is always the same height off the ground BUT, the trans is mounted to the chassis and the chassis moves with chassis ride height.

 

This is what I'm dealing with here...

 

Still gonna disagree. The front diff is just as rigidly mounted to the chassis as the transmission and does not shift with chassis ride height. The CV axles definitely do, but not the diff from my experience with these trucks and all the rest of the IFS stuff. In all of them that I have raised/lowered/reset, not one had any appreciable difference in front driveshaft location. This includes my dad's '04 K2500HD which I modify the front ride height twice a year when we install/remove the plow.
That definitely looks like the motor is shifted to the driver side...

 

Yup, check that crossmember, I'll bet the holes are offset from center causing the engine/trans to move over to driver side.

 

Thanks for your help, Is the crossmember adjustable?? I've only ever dropped the one side that bolts horizontally through the frame.

 

You're right, I agree. But rear pinion angle is affected

 

The crossmember is not adjustable, but there's a stamping on it to make sure it's oriented correctly which leads me to believe the holes might be offset.

EDIT: Did you completely remove the crossmember?

 

I never removed the crossmember when I did the motor swap. Honestly I don't think it could be put in wrong either way. The bolts are at the top of the frame on one side and it bolts horizontally through the frame on the other side. One torsion bar goes above the member and the other goes below. Should I drill out the holes on the crossmember to make the transmission centered?

 

You shouldn't have to drill anything. It worked properly at one time, something has changed, just gotta figure out what!