Here is a 17x8 rim with the Magnum Force dropped knuckle. There is lots of room for the upper ball joint but the tie rod ends get jammed into the rim if there is very much backspacing.
AndyF, what is the exact spacing on that rim? What AREngineering brake kit is that? The picture looks like the 13" x 1" mustang rotor, custom non stock hub with non stock offset for Mustang rims?? And did you do a different caliper adapter for the dropped spindle?
Like to see that picture with a stock 11.75 or 10.75 rotor setup.