Thanks for all the help in advance!
I have been thinking... after raising my Eagle up a bit, I have had 2 transfer cases come apart inside. Maybe coincidence, maybe not.
The first transfer case was the one that was in it when I bought it. The viscous coupler cracked, pieces came off, got between the chain and the case, and the case split.
The second case was pulled from a donor car and I just put it in mine with no rebuilding. It seemed to operate OK bench testing it. Less than 200 miles later, POP! This case split but this time I believe the chain came apart. I haven't opened the case to look at all of what happened.
For the lift... I put new springs on the front AND the 1" spacers. The rear has the new leafs, add a leaf, and some shock stud extenders. Everyone says New springs will give almost 2 inches of lift and the 1" spacers will give almost 2 inches of lift also. They did. When I put both on the front, I measured before and after and got 3.5" IIRC.
This may be a coincidence but would it be likely that too much angle on the CV shafts would put too much stress on the case, causing it to fail? Or... would it be a lot more likely to just cause problems for the CV shafts. There is still some travel left on the front A arms before they hit the frame so it isn't maxed out but it is up there.