I have a 4" dropped axle in my 1948 3100 with a few leafs taken out of each spring pack. I had to heat and bend the steering arms down for the tierod to clear the leafs springs. I'm still running a 235. If you plan on going the V-8 route, it's probably easier to go the Mustang II route in the long run. It will cost a few $$$ more but it will stop, ride, and handle much better.
-Rich
Here's a link to a pic of it to get an idea on how it sits:
http://i24.photobucket.com/albums/c13/rsg2506/dcp_0035-1.jpg
