It is really difficult to tell by the pictures you posted to see if the engine is in the proper position. I would first try to move the engine higher and more to the front to get some more clearance for the manifolds. You may have already tried this, in that case to answer your question; yes.
Just remember that when the frame is compromised in some way, it must be reinforced to compensate for the modifications. I don't like chopping pieces out of the frame. I would look at reengineering the project first. I have never installed a BB in an AD so I cannot give you any specifics. I am sure someone that has can give more information on the install.
I am assuming you have good fabrication skills and a good grasp of structural forces.
Last edited by Lonnie Gallaher; 09/02/2008 8:56 PM.