After installing my Teraflex 2.5 BB, I reinstalled the rear sway bar links on the inside to make room for future 35x12.5R17 on stock wheels. (I have spacers.) I don't have an adjustable track bar, so the axle shifted to the side a little.
On the drivers side, the bolt that holds the link to the axle is very close (1/8" or so) to the shock. Is there any chance that they will touch under flex, and cause damage to the shock?

 

Flip the bolt the other way, so the nut is on the outside and the head is towards the shock.

 

The head of the bolt is too big to fit in the space between the sway bar link and the shock mount. There is also a weld there that would prevent the head of the bolt from sitting straight.
Plus, then it will be sticking out toward the tire, though not as far, which I'm trying to avoid. Its a long bolt.
The only way I could get it to fit in the tight space and stay straight was the way I have it now.

 

Erm, correct me if I'm wrong, but if I remember right the stock bolt head and nut are both 18mm so they are the same size... unless your using the supplied nut/bolt from teraflex that is supposed to go on the top and not the bottom.

 

I have the Rough Country 4" lift and since I'm still running stock wheels I had to put my swaybar links on the inside. Yes they are close but so far no troubles.

 

Now I'm starting to wonder...
I thought the bolt had a round lip around the bottom of the head, sort of like a washer, that makes it larger than the nut by itself. Or maybe I couldn't fit the washer in there with it... Crap, now I cant remember. I'll have to go look in a minute. I know that it wouldn't fit the way you describe for some reason.

 

Have you wheeled it like that?

 

That's the way I have mine.

 

I thought that even with spacers, 35's would rub the links if they were on the outside. Am I wrong?

Here's pics of the clearance:

 

Now I know what happened. I put the nut on the inside because I couldn't get the bolt throught the sway link because the shock was in the way. I would have had to remove the bottom of the shock to get the bolt through. If it will leave me enough space between the tire and link, I will remove the shock and do it that way. I'm also thinking about getting a shorter bolt.