I was in the same situation, the 4runner came with a spacer. I replaced it with Bilstein 5100s and it made a noticeable improvement in ride and offroad articulation.
Agreed, my 2002 was great after the aforementioned VSC mod. Add an ARB to the rear and they work great. Mine has been quite sensitive to tire and wheel combos, so make sure they look good...also u joints and drive shaft.
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