I picked up a Leopold VX1 2-7-33 for my Marlin 1895 with a XS peep and rail. Im wanting the Warne QD rings. My questionis what height rings do I need to clear the peep sight.
 

It really depends on where your rear sight ends up after you sight it in with the load you intend to use at your chosen distance.

Personally, I'd crank the aperture down as far as possible, and play with front sight height to zero it. You can take a little off the bottom of the stem to get the aperture even lower, and I've even been known to take a few hundredths off the top of the aperture to achieve clearance. You won't notice it, and it can keep you from having to go to the next taller set of rings.  
You want that scope as low as it will go for a couple of reasons:
1) Almost all leverguns (including your 1895) have a stock comb set for iron sight height; the higher you mount the scope, the less repeatable your cheek weld becomes and the more the stock will smack you on recoil.
2) A large part of the attraction of leverguns is their handiness, which, in turn, is largely due to balance. A scope (even a small, light one), adds nearly a pound of weight to the top end. The higher it is, the more unbalanced your rifle becomes.

Once you have your rear sight set, whip out your calipers and use the linked chart to pick your ring height:
Warne scope rings

I've already hunted with the gun last year, the irons are already locked down. I am out of town working and was going to grab some rings this week while I was out and mount it up this weekend.

As far as scopes on lever guns, I've hunted with irons and scopes for about 25 years. I personally have no issue with scopes in the mile high see through mounts or mounted as low as possible. I was justhinking curious what others were using as I've seen many users post pictures of the same setup.

Well I went over to the  Marlin Forum and they helped out. Leopold QRW High Rings fit about perfect. Just enough room for the scope tube to clear the peep. Sorry about the bad pic.