I am in the process of getting my transom replaced on my 1989 baja 250 sport (270). My prop shaft is 7.5 inches below the bottom of boat. I am thinking of raising it an inch or two. Does anybody have any input on this?

What was the old x-dim? I can't remember what the transom angle was on that boat. I'd go for around 16½"-17". You should expect going to a 4 blade. The Revolution4 will be a very nice choice with it's good bow lift. A B1 labbed for bow lift can work as well, but will most likely lack bow lift in stock form and be slow. Every setup is different, so expect some dialing in. What motor and drive are you running?

The X dimension is about 14.5 and the h.p is around 450 with standard bravo drive.

There was a guy on Speedwake years ago that did the same thing and I think it was on the same or similar boat as well, his screen-name was Man-o-war or something similar.