Welding in sheet metal in two seperate pieces won't be too hard. The lower piece will be really easy but the upper might be a little fun getting the correct fit. If you do weld in new, be sure the surrounding metal isn't rusted on the backside. If it is, the welder will just blow through. Oh...
I had to use an arc welder for about the same thing. I just butt welded them at around 30 amps but I put a 3/4" strip behind it to make the metal a little thicker. Didnt look too bad after finishing. Just use smatt stitches at a time, like 1/2". dont get it too hot. p.s. the strip i used...
I agree w/ rodd. A little heat and cold can go a long way towards straightening a problem like that. The way I undesstood it was to heat the area from the center out and then cool it with a wet rag. I might be wrong though. Don't try it until you see the same info somewhere else.
http://cgi.ebay.com/ebaymotors/Land-Cruiser-FJ45-16-split-rims-landcruiser-fj40-45_W0QQitemZ7986424033QQcategoryZ43956QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
maybe thats easier, if it'll actually link to it, otherwise cut & paste
2" larger diameter tires only have 1" larger radius, which is really all that matters in this situation. He only has that 1 inch to worry about (he he)
I had the same problem and someone told me about smokeless oil... I never tried it, just replaced the motor instead, but it might be worth looking into...maybe???
Dropping the Bumpstops will keep the tire out of the wheelwell. Alot of suspension lifts for other trucks actually have them as options. I personally would want as much stuff as possible because instead of the suspension following the uneven terrain, say over a boulder, the axle will bottom...