I've been looking around for a bit and am still struggling to find viable solutions to my current exhaust problem. Details:
Installed a torque tube header and 2.5inch down pipe in my '01 XJ. Yes the precats are massive.
Had to install a 3inch lift to clear space on the front end.
Swapped my lp30 for an hp30 up front.
I'm not running into the issue of not having enough space for the down pipe and the front drive shaft. I've narrowed my options to going back to stock exhaust or having someone cut and modify my current exhaust. I'm not going to lift it any further. Are there any options that I haven't considered?

 

any pictures?
how much lift?

 

I would take it to a good exhaust shop and what they can do . without pictures it is hard to say what you can do .

 

as stated above a picture would help. how much more room do you need? if it's only an inch or so it wouldn't be much to give it a bit more of a lift kit. I'm lucky I have a neighbor that does exhaust work if ya get some pictures i could ask him what he thinks.

 

Finally found some time to get under the jeep given the weather. You can see there's just not any room between the driveshaft and the down pipe.

It's got ~3.5" lift.

I'm thinking of pulling the torque tube header and going back to stock.

 

Wow the header is long . If you want to keep it maybe a exhaust shop could cut it shorter or add a bend to it and then hook back up the pipe .

 

Staying at a maximum of 3' of lift, you might as well go back to the LP30. It will provide the clearance needed and may be why jeep installed the LP30 on the XJs with the dual, mini-cats.
The 2000-2001s run an offset transmission mount, to provide clearance. Has yours been changed?
My 2001 has a 4" lift and with the Banks header, it just clears the driveshaft, with everything adjusted for maximum clearance. I'm able to get enough caster, while maintaining the correct front pinion angle so it drives OK on the freeway and off road, while being vibration free . It's been this way for 15 years and over 200,000 miles, so I know it works

 

Might have to go back to the low pinion D30.