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From the testing I've done, I feel like the issue is behind the torque converter and before the front driveshaft u-joint. Both the TH400 and 241 transfer case are old and tired. If money were no object, I'd already have called Monster and replaced them both. Since money is an object, I'm leaning toward the trans. I don't really know TH400s very well, though, so just wondering if anyone else has ever cured a vibration with a new trans.
When were the trans and xfer case serviced last? Have you checked fluid levels in each?
Monster? Don't be taking advice or buying Monster anything. Double check those u-joints. Reclock the driveshaft 180 and see what happens.
If the u-joint is correct, it shouldn't be too tall....Either you received the incorrect joint, or you have a needle bearing laying down in the cap.