UPDATE. I installed my fronts last night, OP i almost guarantee i know what your problem is. The info in post 47 is what you need to check. First of all make sure that little pin thing that sticks off the strut is aligned so that it can slide down inside the collar. Then you need to put a jack under the botton knuckle, slowly jack it up (i had to hit the brakes a couple times with a rubber mallet, it kept getting jammed as i was jacking it up. You should be able to see about 1.5-2" of the KW strut poking out below that colar that it sits in.
I dont think it was 3" but it was a good amount. I am currently 5 threads from the bottom and to me it is a perfect drop, it is not tucking but there is zero gap at all. I dont think i could fit my pinky in there. It looks PERFECT.
So check into this make sure you see the bottom of the strut sticking out the bottom of that collar, im almost willing to place money that this is the issue.