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Bill you are going at it the right way. That flange with the two hole is for a driveshaft safety loop. Unbolt the sidepipes from teh body and see how much room your engine pivots (each is a little different depending on how your exhaust holes are cut). The bottom aft pipe is the one that will hit first when you pivot at least on mine. I also had to loosen the engine bolts and slid the engine forward. This extra little bit was enough to get the driveshaft out. Just watch out for the other things connected to the engine (radiator hoses, wires,...) whe you pull it forward. My first cross member is not welding in but I have the long T-56 trans so we are probably in similar cases.
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