I have what amounts to 32.5 inch tires and I think you will need more than 2 inches of lift.

As to the original question, any lift is going to stress your front driveshaft. When I put 3 inches of lift on mine the front driveshaft (which was original and working fine, but over a decade old) died in about a month. I've added lift since then to accommodate my tires, and got a double cardan rear driveshaft. 2 inches shouldn't require new or rebuilt shafts unless yours are old.

The speedo difference is noticeable and hard to keep straight because the difference is a percentage... It is less at lower speeds and more at higher. I just add 5 mph to the indicated speed but that makes me pretty pokey in the city when I am watching the speedometer.

You will notice more downshift and what feels like a weaker engine. Towing is really not good.

I've had the 32.5s for about two years. Other than driveshafts, nothing has suffered. But I drive like a little old lady from Pasadena.

I had to put 2" spacers on mine, which I like alot, because my tires rubbed in the front at full turn and it just looks more aggressive. With wheel spacers they rub on the back... on the fender... when I am turning tight and hit a bump or enter a driveway. Fml.

When my 32.5s wear out I will dial back to 31's, save a pile of money on tires, and take my spring spacers out.

Two other considerations for you are: the spare. I had to get an 85 dollar extension for my spare tire carrier (otherwise the tire won't go on because it hits the bumper) and a larger tire cover. Also, my jack wouldn't raise the axle high enough to change a tire without a block of wood under it.

You may also notice that your front axle shifts to one side. An adjustable panhard bar fixes that.

 

I clocked my speedometer difference at 10%. It's pretty easy to keep track of, 2 mph at 20, 3 at 30, 4 at 40, etc. It starts to get critical at 40 or 50 when the error is enough that your speed will be above what the traffic cops will spot you. I know a guy that was a state trooper and he said that generally they will spot you 5 or 6 MPH before they pull you over. He said that was to account for speedometer error, however some troopers will stop you for less. If they pull you over to ticket you, they don't subtract the 5 or 6 MPH. You et a ticket for whatever they say you were going. Just remember if your indicated speed is 70, you're going 77 and if your trip odometer says 200, it's really 220. It's really important to keep up with greasing your front prop shaft u-joints. If you don't have serviceable u-joints, rebuild your prop shaft first thing.

 

With the 265/65r18s (31.6) I've got a 7% difference.

As for what Charlie is saying about the spare carrier, that is true. However, there is a free work around where you can remove the carrier, re-drill the center two holes, flip the carrier upside down, and cut a notch for the rear window wiper. I think I found the idea on discovery2.co.uk. I did that to mine and it works perfectly. I believe that fix is good up to 33s.

 

But beware... I did that, Alex, and maybe because my tires are so heavy the mount BROKE. Cracked on both sides where the cuts had been made. I found out when I kept hearing a creaking sound on the back door as I drove down the highway. Luckily I had a strap (it hadn't cracked all of the way through). I got another one from KY_scrap and bought the large tire extension.

But maybe mine was just too brittle or I did the cuts wrong.

 

Wow! That's insane! Mine has been very sturdy. I've stood on top of my spare on many occasions since I've flipped the mount. Actually, on one occasion myself and a girlfriend stood on top of it at the same time.

 

Okay okay. You're skinnier than me! Hahaha.

If there is a possible problem or weak spot, I will find it or cause it. Rapidly.

 

In my case, I re welded the holder twice already. The tire is heavy. I got a tire relocator from AB years ago. Now its squeaking again. I dont have steps at the back so we always use the spare to climb to the roof. I have a 32" tire and a 1.5" OME lift.

 

Thanks all for the great input. My plan is constantly changing - but here's my latest. The current tires are still practically new, so not changing them for a while -- but:
option A: Car is 2002, 165k, original suspension. Thinking eventually I should replace the shocks/springs, why not put a terrafirma 2" lift anyway. Tires are 18" wheels. So, just nudge up a size to fill out the wheel well with just enough tire to handle a mud road when needed.

option B: same as above, 2" lift, but keep the 18" 255/55/18 wheels and buy a SECOND set of 16" OEM stock wheels (guessing $50/each from junk yard) and put some inexpensive 31" - ish tires on those rims and swap out when I want to go off-road. I just don't know how practical that is.

So for now I am thinking option A in a year or two depending...

 

The reason I ended up with a 3 inch lift is that when I called lucky 8 they told me the TF lifts are true measurement. Meaning that as opposed to an OME lift, the TF lift would be an actual 3 inches. The OME would be more and settle down to three. That's what they--Justin, if memory serves--told me anyway. I think the price is almost exactly the same. Just FYI.

My truck had been sitting for 5 years and the springs were shot so, like you, I saw an opportunity for an upgrade at very little marginal cost.