Drive Shaft Clearance Issue with Bell Housing

My front driveshaft has about 1/4 inch of clearance from my bell housing. Has anyone run into this issue/what are the best options to fix the problem?

For back ground, I have a 62 s80 with an upgraded d44 in the front, SOA, cut and turned, pointing to stock 3 spd tranny/transfercase (also have a stock 152). Sitting pretty flat on yj stock springs.

I upgraded my driveshaft to a Tom woods cause I needed the extra travel due to my reverse shackle.
 
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