Everything looks OK, no leaks - what allows the movement? I know I didn't bend it - is it inside the flange that mounts to the elbow?

Yeah, stupid question.

 

Lol... Cool title. If you unscrew the downpipe from the turbo you can freely move the downpipe. It's just held by the flange sandwiching it against the turbo outlet. What I did was loosen it up, then stick a piece of cardboard between the frame and pipe. Then I tightened it up and removed the cardboard. That allowed for 1-2 mm of space so the downpipe is real close to the frame but doesn't touch it.

 

So you think I'm cool?

I got it away, kinda split the difference between the bellhousing and frame.

I figured out what the noise was when I made a hard left turn

 

Yeah, well in my case the space I have for the downpipe is tighter than yours because of the tranny fluid lines. Knowing what I know now I would've gotten a 3.5" downpipe. I saw a kit with one on ebay.