My understanding is CAE recently updated their design, probably to this one, which evidently does not work so it defeats me why they thought it was a good idea.
I sent an email off to CAE this evening with links to a couple of posts in my thread on SC (also found in this thread) outlining the header modifications I found necessary, I'm not expecting to hear anything back from them about it but time will tell. I'm unimpressed with the kit over all, to be honest. It fails at being a bolt in conversion kit on all fronts.
I think my K-frame to sump clearance is perfect, 10mm or so, but I will have to have another look to be sure.
The threads in my CAE transmission mount base plate also failed - one completely stripped out with next to no torque applied to the bolt. Thankfully this was fixable, I had room to add a spring washer and a nut to the top of each of the crossmember-transmount bolts.
Sam