Right Guys... I have just spent 3 hours at Mongoose HQ (Collins) and unfortunatly come to no complete solution to the rear axle problem.
I have not moved the exhaust an further back because have found it to be heating the curve in my floor pan. Will try and get some photos to show later on.
The good news though, I can now take passengers (tested 3 up) without knocking. This is made possible by wacking a dent into the exhaust where it hits the axle. Will take a shot of this later too.
Not the solution I was hoping for but it works... will keep anyone posted when i get a full cars worth.
Just as a note Im lowered 50 at the back and 60 at the front (I think), P1 16v, full sys + decat.
Dave