A Dana 35 is nothing compared to a Disco axle- the axles on Discos are good stuff and breakage is more common with the guys doing rocks out West. It's rare to snap one otherwise.
Sounds as if your ABS is sensitive, which is normal.
For lifts, there's the ones listed- there's also
www.4x4ag.com and me (
www.dap-inc.com). I do kits with extended or stock length shocks where we match the spring rates and length specifically so they all work together. Depending on the wheelin intensity and future mods, there's a LOT of different ways to go with lifts.