84gp,
I myself installed an 8.5 from a GN, then found a junk yard sway bar from a mid 80's Grand Prix with a 7.5, I have the same clearance as you, close but doesn't cause issues.
Your wheel hop is probably caused by something else that might of changed. Most times (not all) it's from a bad pinion angle. Did you put on new shocks? Taller tires? Adjustable upper's that could be mis-adjusted? The rest of the time it's the the instance center of the suspension. GM did a horrible job at designing the 4-link on our G Bodies. Years after our cars were built they realized once they put it under "real" HP, there were some things that could of been done better. One of the fixes that I did was purchase Edlebrooks *Anti-Hop bars" found in any Jegs or summit catalog. Basically they move the latter part of the upper control arm UP. This doesn't change the pinion angle one tiny bit but changes the way the torque is transferred to the tires. It fixes the instance center and gives you better launches and 60' times. I can attest to that.
good luck
