I just put a 8.5 in my 88 Monte, which replaced a 7.5 that I grenaded at Cecil. The sway bar from my 7.5 hits the bottom of the pumpkin on my 8.5. So I am guessing that the 8.5 sway bar is different??
when i changed from the 7.5 to the 9" i had that problem,i made a plate that bolts up in the control arms and has studs welded below it for the bar to attach to.
When I switched my rearend to a GN 8.5" it hits too, But just barely, I can pull it down with two fingers and see light so I'm just going to leave it alone.
Some aftermarket lower control arms have mounting tabs for the bar on the bottom of the arm instead of on the side of/through the arm. Haven't compared them side-by-side but I bet that would drop the bar at least a fraction of an inch from the stock location.
If it's a real sqeaker of a touch the first thing I'd do is loosen the mounting bolts and see if you can jockey just a smidge of play out of it to get you a tiny bit more room under the pumpkin.
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