If I would have installed your kit, I would have set it with the pinion a little high, just like what you have now, which is not that high. You don't want it to be set at 0*, your u joint life will drastically worsen. You want it about 2* off. That way the u joint has to rotate and continually moves the needles around, rather than wearing in the one spot only, until it's flat. Also, with a 4.5" short arm lift, as your suspension moves, the pinion will angle will drop. If you had it below 0* at rest, then you would have a much larger angle, which greatly reduces the u joint strength. At about 10*, the u joint strength is dramatically less.
I'd put money on your drag link being bent. The stocks ones have such a bend in them anyway, that even if it's a little bent, you can't really tell. That area is so close anyway, all it takes is a short bend for it to hit.
I'd get the Currie steering and the LA kit put on and see what you have. I bet you will find that there is plenty of clearance. When you install the LA kit, also set your pinion angle a little high/low, so you will have the 2* either way. The LA kit will never change your pinion angle throughout all of it's suspension movement - the caster changes, albeit very little.