Looks perfect on position to me. TTI says 5.25" from center of crank to top of K member and 2.5" difference on two side measurements.
That said, you could get away with raising it a bit if your tranny tunnel allows. You may run into driveline angle issues or clearance issues. What tranny are you running? Can you move the motor and tranny up currently without running into the tunnel?
My first hemi had headers that I built with a mig welder. I had less room than you do, and made it work around the factory power steering box. It will work, you've just gotta take the time to do it. Not the most exciting thing to do.
I mounted the engine on a stand, mounted the k frame and steering box to the engine, and tacked the drivers side header together. I started with a cheap set of chinese shorty / mid headers from ebay, and bought some U bends and straights to complete what I needed.