1.5" bodylift installed! I went with this because I didn't like how the exhaust looks all exposed and hanging down with the 3" body lift.
I took the PA 883 kit and used a miter saw to cut the blocks in half. Install is the same as the 3" size except for the following:
-you need to buy some new bolts for this, since the bolts with the kit aren't threaded all the way and will be too long. See this thread for info:
http://www.explorerforum.com/forums/showthread.php?t=312012
-Front bumper brackets not used. The only thing you need to remember to do is bend the brackets that hang down from the bumper so that they'll bolt up to the front bumper cover.
-Rear bumper: some trimming on the underside lip of the bumper cover needed to make it fit. Hitch is still within the bumper cover with a little bit of a gap but it's not too bad. I'm going to fill in the space with some hard foam so it adds back some structural support for the bumper cover.
-Lower fan shroud trimmed about 1.5"
-Steering shaft extension not used.
For holding the infamous "pucks" that the body mount bolts go through, I picked up a set of these from harbor freight:
http://www.harborfreight.com/locking-oil-filter-wrench-66568.html
It lets you clamp very firmly onto the pucks and keep them from spinning when removing and installing the body bolts. Worked better than a pipe wrench for me, plus it will be a good tool to have on hand later for those tough to remove oil filters.
Thanks for everyone who posted info on this thread, it was a huge help!