Looks like that shaft is definitely too far off, to me. They DO sit a little off-set, as the engine is off-set to the passenger side from the factory, but that looks too close for comfort, imho.
I'd check the trans AND engine mounts. The trans mount is fairly simple to replace, so that's something you shouldn't have any problem doing, unless this is a 4 speed car, which makes it just a little harder, but still not too bad.
Just so you won't feel bad, I've seen waaay worse cracks than that on Corvette frame, in the same area. As Larry says, it can absolutely be repaired by a competent welder, but the suspension stuff will need to be removed to do it properly. Keep looking at the front end of the frame, and make sure there's no other "boo-boos" you missed, so you can get it all fixed at the same time.
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Joel Adams
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