I used the 3" DSE leafs as well with 315/35/17s on 17x11s rear and 245/35/17s front. I went with the Chassisworks front end, so I was able to adjust my Varishocks down to match the rear drop. I even had a 1" lowering block on the rear at first, but it ended up dropping enough so I took the block out. The fender doesn't cover the tire at all in the rear for me, but with a '68 the opening has more arch to it. With regular springs in the front you may need to adjust as necessary to match up with the drop leafs in the rear.
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