The reasons that a factory spring configuration are preferential.

#1 the axletube itself does not become a point of potential hangup on things. The leafs protect it somewhat, and help the axle to slide over things.

#2 you are committed to using a high steer setup when you go SOA which is expensive. If not you are leaving your steering out in the open to get beaten up.

#3 Time spent on grinding down the differential housing, and coming up with some way to mount the springs above it going to be a pain.

#4 you are not going to be able to turn sharply at ALL, and are going to have to install some sort of stops to keep your tires from hitting your leafs when you turn. With factory placed springs, 35s will rub the leafs at full lock. You are going to have springs even further out than this. Even with spacers (which I am not totally against in themselves) it's not going to solve that problem all together, and going to look awfully funny.

#5 your COG difference is going to be negligible with either setup... AND SLIGHTLY higher with a SOA due to the steering. (not enough to matter)

#6 From the outset you have been talking about cheap, and this is not aligned with that goal. The single BEST thing about the wagoneer axle is that you can install it in Montero/Raider so close to it's factory configuration.

It's certainly not impossible, but there is MUCH to not like about it. The biggest thing I would be concerned with is turning radius, and having to run 4 inch wheel spacers. If nothing else, please measure, and consider that. It would be easy to mock up and see whats what.

Good luck with it. I hope it turns out good.. It has a ton of potential whatever way you go at it!
<img src="/forums/images/graemlins/kewl.gif" alt="" />