Hey mate,
First up, I'm not sure if you are aware there is no need for a lift on the D1 to fit a set of 31" equivalent tyres. The 245/75 R16 for example will go on the stock rims and fit fine. All that is required (5 door) is a small camel cut at the rear of the rear guards. A lift will not stop the tyres from catching on the rear guards, the suspension will just have to compress slightly more for it to occur. Some people (myself included) have found they also need to bend the metal section of the mud guards back just slightly as well to stop some slight rubbing on full flex.
The tyres will give you a small lift (diff included), which is nice. However, if you are set on a lift, in the most basic sense a set of lifted springs will be fine. Depending on the shocks currently installed (I don't know the Koni's), generally they are fine with a lift under the 2" mark. You will be coming close to the limits of the brake lines, though not on them. Caster correction is nice, but not the end of the world.
In the end, how you go about your lift will be pretty well dependant on the depth of your pockets. Good luck with the decision.
Chris
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Chris Phillips
Offroader: 1996 Discovery 300TDI (The Green Donkey)
Missus: 2010 Discovery 4 TDV6 (Fancy thing)
Just 'cause: 1999 Discovery SE 3.9L V8 (Makes fun noises, sometimes...)
Spares: 1998 Discovery 300TDI (Only vehicle actually in the garage..........)
Run around: 2001 Nissan Pulsar ST 1.8L (Soul crusher)
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