I decided to go with a 3.5"Fx3.0"R ReadyLift kit w/ 295/70/18R Terra Grapplers. I went ahead and got a completely new 2" diameter driveshaft made, since it still would not clear the CAT completely. I decided to go with a completely new driveshaft, so if I ever do have driveline problems I can just remove the lift and replace old drive shaft and the dealer will never know. I am just way too scared to void my warranty on an engine/transmission that has only been in use for one year.

Plus, if I ever decide I want to lift the truck even more in the future, I don't have to worry about the CAT/Driveshaft issue in the future. I will post pics once I get my truck back.