You didn't answer the second question but from your post I gather it's tire interference.
Hope this helps, I'm running 35's as well on three inch springs along with a 1" body. I have 2" of bumpstop extensions front and rear. The rear is above the bumpstop and the front is on the bottom spring pad. I get no contact between the tires and the body that's worth noting. Occasionally the rear tires will rub slightly on the inner rear fender plastic skirt. The front has never made contact.
I'm also running an antirock on the second loosest setting.
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