Welcome to me and Limiteds game. The removal of hte T case is easy enough but finding the rear end cap for the transmission and removing the front pumpkin may be a little harder, id go take a good look at a 2x4 explorer before i started anything. When my transmission goes im getting a level 10 bullet proof trans thats already set up for 2x4. 3 inches of drop wouldnt be smart, 1.5 and some sway bars would be fine. Ulitmate build list is this
MMR 5.3L (bored and stroked 4.6L block) built for 1000+ RWHP
Trick flow heads
Crower stage 3 or stage 2 cams (light lift) + steeda cam gears
Steeda underdrive pullies
Kenne bell twin screw supercharger
Fuel mods to support 700+ rwhp
10+ wide rear tires.
such a build could easily run 15-20 grand. And dont forget that after about 400 the diffs and stock trans in this beast are no good. and will have to be upgraded as well. Im fairly certain i wont ever go down this road with my truck, but myself and limited have spent hundreds of hours doing research. Good luck and keep us posted.