When I had 35s on my rig, I had somewhere around 8-9" of total lift, and could still make the tires rub.
With your 5" of total lift, cutting metal is kind of a understatement if trying to fit 35s. Hacking like hell would be a better description.
I have only read about of couple of people that have fit 35s with 5" of lift. I know that Doug has that setup on his X, but he is in the military now and doesn't have much time for hanging out here on the forums. I am thinking that LizardTrac may have run that setup also for awhile.
A couple of other things to remember though. Your A4LD (if you have an automatic) is probably close to retirement at this point, and 35s will only encourage this. Your front hubs/bearings aren't going to like the 35s at all. And your stock axle gear ratios are probably no good for 35s either.
Stepping up to 35s, and using them successfully, takes a bit more work than just making them fit.