Get ahold of Glenn on Marlin, he's known as 79coyotefrg on the site, he's also a moderator. He has a first gen, and might be able to help ya too.
The front crossmember will help lower the front mount and help with some of the pinion angle! Drill another hole 1" forward in the perch and that will move the axle back 1" and help eliminate some angle! Yeah a high pinion center would be the best, that's what I'm planning on! Get a new housing and r&p and swap it out!
Another thing thing that can be done, is to have the axle ends cut and rotated.