since it has coils you can drop the coil buckets 2-3 inches. i have done this and its a cheap way for some extra lift. also call rancho, they make 8" lift springs for this body style trk. just tell them 86 f150 4x4 with a 460. as for the 4wd thing, i would really make it 4wd, but i think you would be better to just find a divorced 205 transfer case and leave it with the 2wd tranny. on a buddys trk we converted it to 4wd, and i made a set of axle pivot brackets for it 12" lift. we called rancho and ordered 8" 86 f150 4x4 460 springs(his was a 302) and it put it right at 10" lift. then we dropped the coil spring buckets 2" and it sat right at 12" lift. you have to ground out the rivets and on the bottom where it wraps under the frame put some spacers under there with bolts, but it works and as long as its tight, its strong. we 4wheeled the hell out of that trk, and even jumped it a few times and it held up(even with a dana44 TTB)