I was able to add 1" more clearance for the front of the pan to the hood pan. We had zero. I also cut down the rear carb funnel as lowering the front raised the back.
At this point, no more clearance could be created by modifying the carb "funnels" because if I cut the center carb funnel any more, the diameter will change since it's now cut to the flat portion. Also, there is very little clearance for the choke linkage under the pan.
Since the foam measures 1 3/4" high, and we now have 1" clearance all around the pan, I believe it will now work as intended. Note that the '66 GTO Ram Air pan will work on the First Gen Firebird only if installed "backwards". This is due to much less clearance toward the rear of the hood than the GTO offers.
Will report success or problems as soon as we try it on the car.