The lower sway bar bolt is only about 1/16" from hitting the shock. These were the shocks that came with the lift kit(teraflex 1256200) but obviously they're not gonna work. The pic in the instructions shows the rod down. I'm starting to wonder if this is even the right kit.

 

Mount the link in the factory position like this.

 

I'll try it. I feel like there will be a clearance issue there too. Hope to get some answers from TF tomorrow. This is kinda messed up.

 

I think the only thing messed up is you have the sway bar link on the wrong side of the mount.

 

The TF instructions state to install the link as the OP did in his picture for more clearance. The instructions show a shock (where the body is up top) mounted reverse as the OP's is and there isn't a clearance issue.

 

My sway bar links are in the inside and I haven't had an issue but let me check for a closer picture in the morning

 

I have a teraflex 2.5 coil lift with Tf shocks! But I have so much more room

 

That's way more clearance than I've got. In my pic the axle is still pretty low, but if I try to jack it up to where I can put the wheels on, the bolt actually contacts the shock tube.
I'm just trying to go by the instructions in the kit. Maybe people see this all the time and just know to flip the disconnect to the other side. This is a first time for me. I don't know why my pics are flipping when I post them.

 

the bushing looks huge! Not sure but if you have to drive it to work and you have wheel spacers just flip it to the outside and make sure the bolt doesn't rub on your tire or rim or else flip that too until you get an answer from Tf

 

I've got another vehicle to drive, but I was hoping to get this knocked out over the weekend. She's been down three weeks now. I have other issues too, mostly due to vague or incomplete instructions. This is just the latest snag.