Sorry I never replied. I wound up ordered the ATE kit from Volks Metalcraft and waiting for them to arrive. I inspected the trailing arm again and I can't see an obvious damage. Paul at VMC said I can get 3-4x more adjustment with the ATE kit so I'm hoping that will be enough.
So the new crossmember bolted up ok? fit over those large body studs with no issues?
Yes the crossmember bolted up fine. It was pretty rusty and I cleaned it up a whole lot but I didn't have any problem lining it up and installing it.