The truck I am parting now has a 2” body lift on it. It was a daily for many years and a trail truck. It had 3” spring lift as well. It caused zero issues over that time.
I had the exact problem in my 1998 D1. I was out enjoying a snowy day and stopped to get gas and suddenly no forward gears. Clutch packs were shit, required a rebuild. I hope that’s not your problem. But sounds real similar
Fox shocks with D2 mounts front and RTE mounts rear. $400 for all of it
RTE steering with TF stabilizer and relocation kit. $200
TF trailing arms. $150
Diff guard. $50
I still have to pull the radius arms and drive shafts. it’s all in good shape, just real dirty. I’ll get everything...
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