Ignore the haters, im doing a similar swap into a 1973 Dart. The new efi HEMIS just dont cut it.
Here is our solution for the same clearance issues you encountered, we had this issue (see pic of rack and column clearance) with a VK i built for my wife..
This car has a internally std ls1 (other than cam and springs), makes 700rwhp on 6psi. Has done 2000 race kilometers (circuit racing kms) and is super reliable.