Thats correct. They terminate under the firewall. Interestingly I always thought this had a raised A arm front suspension which was the alternate to the straight axle since the front end is way lower then a normal straight axle. I think you got the stance nailed down though. Just need to kick the 4 link back with longer bars and different mounts, Check out this illustration:
http://media.photobucket.com/image/2%20lane%20blacktop%2055%20front%20suspension%20photobucket/Brock_62/55/Two_Lane_Blacktop_55_front_up.jpg
http://media.photobucket.com/image/2%20lane%20blacktop%2055%20front%20suspension%20photobucket/Brock_62/55/Two_Lane_Blacktop_55_front_down.jpg
This ink is how the car looked in the 80s when it was convered back to the AG days and before some idiot put a camaro subframe under it to make it more streetable. The side view is a few pics down.
http://twolaneblacktop.yuku.com/topic/35/t/Now-In-Canada-TLB-39-55-Was-Modified-Some-More.html
AND ANOTHER LINK TO THE RESTORATION THAT SHOWS THE AXLE:
http://twolaneblacktop.yuku.com/topic/26