Okay here's an update
dremeled the block out and it clears now, got everything back on but it still leaks a little bit. The good news is i drove it and in 2-3rd gear punching it i can build about 2 pounds of boost so i know it's working.
I need to find a better gasket to seal the manifold against the motor, i think we may have warped the mani a bit when we wreneched it on without the turbo clearing yesterday.