The front drop hanger is what your springs are bolted to at the front of the frame and what you bought from Marlin, TG, or All Pro. The way the hanger is designed is that it adds to the lift when installed under the frame, but if you install it up in the frame or up in front of the frame, which is kinda the way you have it now. You have the frame, then a piece of square tube then the spring hanger, which is causing you to be so high. Get rid of the piece of tube between the frame and spring hanger. If you need to have the hanger that far forward, which I think you will since you have your shackle more forward than usual, brace the hangerto the frame well since there is a lot of leverage there. You may even be able to slide the hanger back under the frame a little and get a better angle on the shackle.
You may not need to get new springs if you remove the blocks and shorten the shackles. Tack the hangers in and see where it sits if still too high, then go to new springs. No need to spend a bunch of money on new parts if you can work with what you have.
