The build manual says to use washers on engine to clear subframe and steering rack. To get even a small clearance over steering rack I ended up with a large stack. Does this look right? The exhaust flange is also pushed up to frame on passenger side.

 

That is about right. Be sure that the transmission & crossmember are installed when setting engine height. Super Glue works good to keep the stack of washers together. Instead of washers, I used the caliper bushing from an 80's GM vehicle Like these: Buy Wearever Disc Brake Hardware Kit 5103-2 at Advance Auto Parts

 

That was my problem. I set engine height by itself. Once I installed tranny, it was hitting the steering rack. I'm having to go back under and install more washers. What a PITA!

 

Swapped washers out with old seatbelt spacers. Unfortunately I can't get that plate to line up correctly. Gonna have to pull tranny so I can maneuver engine better in the bay.

 

Is the pan sitting on the rack or the lines?

In the LS1 world, we have to bend the lines down a bit to fit.

 

Sorry but....I strongly suggest something much stronger than seatbelt spacers.