Yes Button, I use the lower ride height setting, with the 20mm spacer below the stub axle. It works a treat, and I still have over 100mm of ground clearance so sleeping policemen are not a problem.

I don't understand why your shocks are locking up, the Bilsteins are specifically designed for the kit.How much gap is there between the rebound spring and the stub axle?

Tim H.
1986 4/4 VVTi Sport, 2002 LR Defender, 2022 Mini Cooper SE