doing a basic bag setup have some Q's

[IvelDesigns]

although i don't think you will hit the frame when at ride height with the blocks in, with XXL, you will bottom out when aired out, at least to the bump stop.

if you are gonna wait to do the notch, pull the blocks for now.

as for your pinion question, based on what i'v read here, you will need to make an adjustment. if you have a split shaft, one option is to flip the carrier bearing mount in the cross member. there is a post describing this in this forum... i'll find it and post a link.