This might be a stupid question but I just noticed that my rear diff seems to sick out almost an inch more on the passenger side. I have a 2.5 suspension lift in the back with no panhard drop bracket. Would this be the reason why? Does the panhard cause it to pull a bit when it drops down?
Thanks for any info.

A full inch would surprise me with only 2.5" of lift, but yes.  The panhard sweeps an arc downward from nearly level, with the pivot point being the passenger-side frame.  That means the other end, as it moves downward, will work its way toward the passenger side.  Since that end is bolted to the axle, the whole axle will move to the passenger side. 

I've got the opposite situation, with my axle displaced about 3/4" toward the driver's side.  Looks awesome and meaty on the driver's side, with the wheel/tire sticking out 3/4", but crappy on the passenger side..  My axle came from an XL-7, and because the frames back there are different on the two trucks, the Panhard mounting point on the axle was slightly different, more toward the passenger side.  I've ridden it like this for a couple years now with no issues, delaying fixing it to see if I was going to maybe lift things a lot and alleviate it that way.  But now I need tires, want to upgrade size and am doubtful that there'll be enough room on the passenger side for wider rubber without fixing the axle offset.

If you're really off by an inch with only 2.5 inches of lifting, maybe I can take care of my whole situation by doing the same.  That'd be a lot easier than shortening the Panhard by 3/4".

Yeah that could work. I do have a panharde drop bracket. I took it off cause it wasn't working too well. i'm going ot re install it and just weld it to the diff.

That's pretty much exactly the point of a Panhard drop bracket.

You've convinced me to try the "add more lift" route on mine.  I'm skeptical that another inch or so will do me much good, but what the hell.  Can't hurt.