Just mounted my 37s this weekend. I'm on evo 2" plush rides up front and OME med duty rear springs. And it gave me 2.5-3" of lift, If you go bolt on coil overs you will most likely end up with 4" of lift (cozdude is running this set up and that's about as low as he could get it).
I have the dynatrac trail leader package with 4.88s and arb lockers. 5.13s would be a better fit but I didn't want that small of a pinion in my D44s. My wheels have 4.5" of backspace and at this height rub while flexing in a turn so I am putting on wheel spacers.
I also have 1350 drive shafts front and rear that required adjustable upper control arms front and rear.
If you get 4" out of the coilovers you'll probably want a raised front and rear track bar brackets and a drag link flip.
In regards to cutting, yes you will need to hack away a few inches of the pinch seam. When I first mounted mine the tires were less than 1" away from the pinch seam at ride height. I also plan to cut off a few inches of my rubi rails like I did on my last jeep. Also if your rear bumper lines up with the rear pinch seam you may have rubbing issues there so i recommend a stubby rear bumper if you don't already have one.
Hopefully that helps and here are some pics of mine on 37x13.50 coopers. Also there is another thread on here dedicated to 2drs on 37s
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