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QA1 engine location.

If that's a '70 car then the problem is simply the air cleaner. It's not correct for that year and that's why it doesn't clear the hood properly.

Also, the engine "may be" at the wrong angle. If you were to shim the trans up 1/4" at the mount it would probably allow everything to clear.
Great idea... I didnt think of raising the tail shaft. kudos... I will look into that as well. It is a 70 GTX who ever built the car did an ok job but some of the stuff is sub par to say the least.
In the picture below he let some girl do a photo shoot in the car.

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