Issues after installing lift
You may need to get a longer driveshaft. Is it maxed out? I just got a new one made by Tom Woodys 4wd. Super nice and came quick.
You can get a drop bracket for it or an adjustable length bar. I used a PMF drop bracket when I dod my RSK.
Your issue seems to be that the differential end of the driveshaft is now farther right than stock, so farther back the driveshaft is also farther right... and closer to the transmission. Lift should raise suspension 4" relative to transmission, which should increase vertical clearance some back closer to the transfer case, but you have a left/right issue.
350s with solid front axle have a track bar, and yes, lifting without different track bar or bracket will shift axle sideways a bit.
But OP has a 250. Since the axle arm pivots locate both axle arms side-to-side, I wouldn't think they have a track bar. I have a 350, so no first-hand experience.
However... if the lift kit doesn't drop the pivot points and just pushes the axles below horizontal in their arc of travel (ie, increasing positive camber), that would swing the front differential towards the centerline, and may account for the driveshaft interference. But the picture is awfully close clearance, and I would think the pivot-to-differential distance on D50 driver side axle is long enough that a modest drop in the suspension arc at the differential end shouldn't swing the diff to the right that far, AND the shift to the right will be less back towards the transfer case If the lift kit includes 4" drop pivots, that should keep the axle arc close to stock and shouldn't change the driveshaft location left-to-right. If the kit has drop pivots, I would look over assembly carefully and see if there is anywhere that mis-assembly or poor kit could shift the driver axle's pivot point to the right relative to stock.
You might want to find a buddy with a 250 and compare their left/right locations with yours. This is a head scratcher... concur "shouldn't happen", but it did and something weird is going on. Time to take a deep breath, and start carefully checking. Good luck.









