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Doesn't matter what the engine/trans is. If your truck didn't have a 700R4 in it, this will cause you to have to get your drive shaft shortened, which is MUCH cheaper than a new one. AND you have to move the crossmember back. If this is on a 82-87 truck the holes are already in the frame, you just have to move it back.
Move it back to wards the pan. From the picture it looks like you need to put it back where it came from. Did it have a 700R4 before the swap?