Is it the sliding shaft or slip type?  Kindly enlighten me. Thanks!

The reason why I'm asking is because I recently had a 2-inch body lift and I noticed that after the lift, I could hear a soft clunking sound that seems to be coming from the steering shaft.  If you're inside the car, it sounds as if its just behind the steering wheel.  I was thinking that probably the u-joints of the shaft are under tension because of the body lift, thus they were stretched apart and so the need for spacers.  However, I read in one of the threads here that as long as you have a slip type of shaft, you don't need to add spacers (I think it was h.galvin who said this) Thanks!

Btw, I just recently changed my balljoints, tierod ends, centerlink, rack-ends, and idler arm bushing thinking it was coming from there.

Looks the same as mine. Its the non-sliding version so you may need a spacer. Have you tried slackening the clamp bolts its probable that you may not need to move it far along the splines. You should be able to see if the coupling rubber is stretched.

Where in the steering shaft do you insert the spacers?

when you do a body lift you have 2 pins that need to be drilled out and the 2 shafts are glued together so you need to heat them up to get rid of the glue.
when doing my 3" body lift i did not do it at first and heard a pop. after doing the above i found that the steering shaft kept falling. i was told it had another under the dash. so i pushed it back inside of the dash and used a water hose clamp to keep it from calapsing

i have since added power steering but i can get some pics if you would like some let me know