It doesn't have a cv front drive line though, and binding at full droop with a 4" is what I expected, not driving on level ground. It isn't any of the other listed possible problems i.e. birfields, everything was in working order before the lift. I'm open for any other suggestions
If it is a stock drive shaft, then it does have a CV on the t-case end of the shaft. (Like Derek said)
To check whats binding, un-bolt the drive shaft at the third member and turn the shaft with the t-case in neutral while holding the shaft at a similar angle as the resting position. You should see your problem.
If it really does have u-joints on both ends and it is not binding, then jack up the front axle. Lock both hubs and spin the flange on your third member. If that is where you are binding, then unlock one of the hubs to see which side is giving you trouble(if you dont have it spooled/locked).
Did you turn the pinion up any? If everything was working fine before the lift, then you can pretty much count on this being an angle problem and you just need to crawl under there and find where.
Good luck bud.