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Jack up on the axle or leave it on the ground, either one. If you have gas charged shocks put stands on the frame and use the jack to support the axle and adjust it up and down so you can get the bolts back into the new shocks.
im thinking about new shocks also. ive been looking at the donahoe shocks, at 95$ theyre a lil pricey, thats what DCSpecial runs and he highly suggests them, im just trying to smooth out my ride a little.
I have Rancho RSX's on my truck now - but I can't say that they are anything special really. I will definitely go with Bilsteins when the time comes for shocks - I think I have read about them on this site more than any other shock.