I don't think you have your parameter count correct. That's the number of moments going into the model, not the number of parameters - for that you need the 

Here's how I think about it, for a rule of thumb: At level 2, you're doing a factor analysis with 35 variables. What sample size would you be comfortable using if you were doing a single level factor anlaysis with 35 variables? I'd say a couple of hundred, at least (and ideally, a lot more). That's how many clusters you need.

Multilevel CFAs are kind of cool, and interesting, but it's really hard to find enough suitable data to run one.