Is it possible to adjust the rear suspension in order to make the sled sit a bit higher? I wanted to adjust the rear to sit up a little more (more of a raked look, with more of the track visable under the seat).

Sure, crank up the springs but she will ride like crap.
Use the spark plug wrench to adjust the plastic block under the spring.
You will see 4 steps, the longer the step the more preload on the spring.

what kind of sled are you riding?? they make kits to lift them up and lower them.

the reason I ask, on my cat, you cant use the springs to lift the rear end up, but there is a simple little piece of metal that will bolt to the tunnel and then into the rear suspension and it raises the rear about 3 inches. Just make sure you arent throwing too much snow out and not into the heat exchanger (assuming you have a liquid cooled machine),,, if you do, you can run into overheating issues.

You can get drop brackets for your rear but it changes your handelng so you may have to do a bit of suspension tunning for good handeling again

I'd agree, sounds like a set of drop brackets is whjat you're looking for. As long as there are some for your sled available. I know some people have custon-built these, though. . . .

Thanks for all of the responses. I have a 2001 Yamaha SXR 700. Do I have to buy something for this sled or does it have the adjustable block that was mentioned?

I don't think you can adjust your suspension any higher, as it doesn't look like your stock suspension have the torsion springs, just springs on your shocks. I think your only option is buy and install a set of drop brackets.

Dropping the rear, with no other changes, no matter how it's done, removes weight from the amount normally supported by the front of the skid. This removed weight will now be carried by the front and rear of the sled. This WILL affect handling. To what degree will depend on how much you raise the rear.

Think of a teeter totter, sitting level, with a guy on each end. Have one of the guys lift one end. What changes? The center now has no weight on it, and the ends now carry the weight that was being supported by the center. No?

Coming back to the sled, the changes you can expect will be heavier steering, a loss of flotation because the center is no longer carrying it's share, and rear springs acting wimpy because they have been forced to help support weight removed from the middle of the sled (front of skid). FWIW