Ok lets start from the beginning.
Types of Lift
Body Lift
With a body lift the body is lifted relative to the chassis using spacers.
Suspension lift
This can be achieved in 2 ways, using spacers or longer/stiffer springs, these lift the chassis upwards and the body too as its bolted on top.
So what are we looking for in a 4x4.
Good ground clearance.
Good approach, departure and breakover angles.
Good traction.
For anyone who doesn't know what the angles are here's a little diagram.
So how to we achieve these?
Ground Clearance
The lowest point of any half decent 4x4 will be its diffs. With solid axles like a Patrol or the rear of a T2 the only way of lifting the diffs is to fit bigger tyres. However with independent suspension you can lift the suspension to lift the whole vehicle including diff etc up, however the out board end of the wishbones will not lift in this situation.
Approach, departure and breakover angles
A little light surgery on the bumpers will help improve the approach and departures angles, but there's no much that can be done about improving the breakover angle in that way except ditching the side steps if you have them. The only solution is a suspension lift which will lift the whole body and chassis upwards away from the ground.
Good Traction
To get this you need to have the wheels on the floor with good tyres and with drive going to them. Locking diffs or LSDs (or no centre diff) will mean that you can get drive to a wheel whilst others are in the air but its still best to have as many wheels on the ground as possible and as many driven as possible. This is done by having flexible suspension that can conform itself to the terrain, to do this it needs to be free to move, this means no anti roll bars, soft springs and long travel - these do not make great bed fellows on the road though so a compromise needs to be struck.
Bigger tyres
Most 4x4s will accept larger tyres with no or little modifications, it might be necessary to remove the mudflaps or trim a fraction off the plastic bumper (which if done carefully is invisible) - on the T2 the biggest you can get away with is 31/10.5).
To go beyond this can involve more work on some vehicles you will hear that people say you need an X" suspension lift to fit YZ tyres, this is both true and untrue. A suspension lift does not allow you to fit larger tyres unless you also fit larger bump stops as the tyre is still free to move to its original position in the arch on large suspension deflections just as it was without a lift, if the tyre catches without a lif it will atch with a lift unless you fit bigger bumpstops - only a bodylift truly give you more space for larger tyres as it lifts the bodywork on which the tyres would catch relative to the bumpstops.
On the T2 in my experience of fitting both 265/75/16 and 32/9.5/15 tyres above is all rather superfluous as its not the height that is the issue on the T2 but the steel bulkhead that gets in the way when you go above 32". I have fairly drastically reshaped the bulkhead in this area with a large hammer to get it to fit. Likewise the front bumper needs trimming too, but again this can be done so it barely shows. A large enough - probably 3"+ - bodylift would probably do the jobas there is relatively little travel in the front suspension.
Suspension lift
Whether its changing the springs, fitting spring spacers or winding up torsion bars, any moderately competent mechanic can perform a suspension lift on most 4x4s in a morning. Some will require longer brake lines to be fitted but the T2 does not (not at 2" anyway).
Longer shocks are only needed if the unladen spring is longer than the standard spring or if the springs are going to be allowed to dislocate, in which case they need to be tethered and suitable relocation cones fitted. In the case of the T2 the standard front shock allows full movement of the IFS so there is no need there.
Body Lift
These should be supplied with a set of spacers and bolts and better kits with bumper brackets and anything else that might be required. A competent mechanic should be able to perform a body lift inside a day - or maybe a touch over it all depends how hard it is to shift the standard bolts as if they are rusted in it can be a long job, especially on the T2 were a number go into captive nuts in body voids so you can't apply heat to them.
As well as the obvious job of the spacers other task include, lengthening the fuel filler and breather, loosening wiring and plumbing that bridges the gap so as to provide enough slack, possibly relocation the radiator or its cowling downward as it is attached to the body where the fan is attached to the engine/chassis.
On the road - roll
Inch for inch a body lift raises the centre of gravity of the truck the least and thus it will induce less additional body roll. However a spring lift also give the ability to fit stiffer springs at the same time to help negate the additional body roll.
Personally I think bigger tyres and a 2" lift with HD (higher spring rate) springs is the way to go for a vehicle that is going to be used on the road as well as a play thing. The larger tyres will give clearance under te rear diff and the suspension lift will increase and the angles and increase clearance under the front too. A more dedicated play thing can go for soft and longer springs with longer shocks and then perhaps a body lift to allow still bigger tyres - but remember you still ave to turn them so lower gearing needs to be on the cards really.
