Did you use the stock transmission mounts or did you user lower mounts? Some years ago FVD Brombacher (German Porsche tuner) had a 3.4 conversion kit for the 986. They used a different front mount - kind of subframe and other transmission mounts. I think the transmission mounts where from a 993. They hadn't clearance problems like you - nothing had to be cut out. I think the 3.4 engine was dropped about 1 inch or so compared to the 3.2 engine. Also you should check if the engine has enough clearance if it moves. This looks very tight.
Regards, Markus
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