There are several threads in here that cover your questions. Search!
When you say "nose down by 1 3/4", is this according to the specified height, or in relation to the rear? The front is supposed to be lower than the rear.
It is possible to adjust the sensors in order to make the front higher, but:
1: The torsion springs will have to be adjusted accordingly in order to keep the Neutral Pressure within limits.
2: Steering geometry has to be adjusted for the new height/angles.
3: You will have more wear on CVs. - A diff. drop is recommended.
You have to have the FSM and TechStream in order to play with the heights on an AHC equipped vehicle. That's the only way to read the sensor signals, and the easiest way to read the Neutral Pressures.