How close is your down pipe to your oil pan? I was changning out my 02 sensor today and noticed mine sits right against it. You can push it a hair and see light thru so I know its not smashed into it, but I couldnt imagine that it is suppose to be touching.

Anyone willing to crawl under their xj and see about how far your gap from the oil pan to the down pipe is?

 

Mine is about .5"-.562"
My guess is that the driveshaft was able to come high enough and hit your DP.

 

Funny thing is...im 2wd

My motor mounts are destroyed...i guess the engine torque did it...