[JayBar]

Well, I guess it can go either way. My guess is that if it is a new situation, then the springs have saged a bit causing the angle to change, so raising the ridehight would compensate for the droop.

Of course if it is the other way it will be a bit harder. But if you don't have one of those angle measuring gadgets, try raising if first see if it works.
But since you say with the frame up and the axle hanging the wheels won't turn at all the problem is on the down side, correctable by raising the height. Hell easy to check out, worth a try.
Jay Bar