Are you limiting it too much? Do you have the boots AND 8mm of limiters installed? Without the boots, 8mm seems to be the magic number....not sure what to use with the boots.

You can either limit up-travel by putting the spacers on the shock shafts, or just let the CVD hit the out-drive....either way, your uptravel will be limited essentially the same. The difference is that one way will damage your sun gear, diff housing, your out-drive, and your CVD....and the other won't.

I set my up-travel by fully compressing the shock, then turn the wheel....if the out-drive catches on the CVD, add 1mm. keep going until the outdrive no-longer binds on the CVD. Golden.