Faith, in my opinion the first thing you should do is remove the Panhard bar and sling it as far as you can. It is the most awful mechanical abortion that was ever bolted to a car. This Panhard guy should have been suspended in mid-air with a strong cord around his privates until he came up with an acceptable design to limit lateral movement of the axle. That's as nice as I can be about that.

Next, don't fall for the "shorty" shock crap. You need shocks that have enough travel so that they neither reach their limits in extension or compression. In my opinion, you should start with shocks that have at least 4 inches total travel. Then the shocks should be mounted to the car with 55% of that travel in compression and 45% of that travel in extension. Faith, I don't know who built your car, but when I build something like this, I begin with a component that will work for the intended purpose and then fabricate mounts to bolt it or weld it to the car. You don't install something on the car like the shock mounts you have and then just throw any old shock on there. That's what someone has done on your car. Let's say you do have a 4" travel shock. Compress it all the way in and then pull the plunger out 2.200". That will be the installed length eye-to-eye of the shock and will give you 2.200" in compression and 1.800" in extension. Whatever that eye-to-eye measurement is, is how you will want to build your shock mounts.

In an ideal world, to take full advantage of the shock, you would mount it thusly. Place a string under one of the tires and hold it in the approximate position of the shock on the other side of the car. Swing it up and down in an arc. This is the ideal mounting line for the shock to use all of its capability. Realistically, follow Dave Severson's advice about the 30 degree angle limit and you'll be ok.