Alright got the 350 in pushing a 700r4...Just had my drive shaft made and installed it..found that my drive train is actually off by about 1-2 inches..Does anyone know if this is going to cause a major problem or do I have any room  to spare..My natural guess would be I would be throwing my u jonts if it is bad but would like know for sure before I start pulling and re drilling....  

You might get some weird vibrations, which over time, could lead to some other problems. You could probably cut the shaft behind the U-joint and re-attach it to the proper length. Don't know how much that would cost, though.