Rear bags in but hanging up when aired out

[tubbedII]

So this weekend, I was able to put in the bolt in c-notch, 2" lowering blocks and my 2600 dom's in the rear (no air supply just yet, so it's sitting at full dump). When I put it down, the nose of the pumpkin (in-between the u joints and the axel tubes) hits the shock x-mbr before the axel goes all the way up into the c-notch. If this wouldn't happen, I could probably go down another inch or so.

I've read A LOT posts about this type of install, and I don't recall this ever being an issue. My question is, is it ok to just cut a section out of the xmbr where the nose is hitting it?

I know, the pictures are horrible, but I finished this up late last night so it's all I got...