[padresag]

you don't want to drop the pitman arm as that will change the ratio of your steering (turns of steering wheel). just buy one of those dropped d/links as ugly as they look.
I would just notch out that spring plate for clearance.
the steering arm(off top of knuckle) on my old frt end was heated by the look of it and bent a litlle and then they welded plate to it top and bottom; for strength I suppose(i can get you a pic if you like). If you bend it to much, again you are going to affect the steering ratio(shortening the distance between the d/link and knuckle). you would be better of fabricating a new steering arm or sending the old one off to someone qualified to modify it(like the guys that do dropped axles).
it is a terrible think to have brake when you are travelling down the road,and I hope that iy is not me going in the opposite direction when it breaks
ron

it looks like you cut off the old ball stud. when you put it back together just ream out the lhole(taper) to accept a t/rod type end as found on newer d/links. same as for your pitman arm, this will allow you for a bit more flexability there