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Hey,
That doesn't look like you cut much out in the end? I'm sure I have more out on mine for my 245/75's and I still scrub. I'm not lifted, but in the end that actually makes no difference. When you compress completely it doesn't matter how much lift you have, it will still go to roughly the same spot.
Chris
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Doesnt need much , about 1" measured from the bottom of the guard towards the rear. Springs wont compress that much unless they are really soft and even then your shocks should slow that down.