Your Inspector is full of shit. Here is the breakdown of lifts based per GVWR:

Maximum lift heights for GVWR 4500 lbs and under... 7" above original vehicle height.

Maximum lift heights for GVWR 4501 - 7500 lbs... 9" above original vehicle height.

Maximum lift heights for GVWR 7501 - 10,000 lbs... 11" above original vehicle height.

Note these include suspension, tires, body lifts all in one.

Todd noted it in the Yahoo board, the more you add to your truck, the heavier the GVWR hence the more lift you can get away with in theory. I'm just not sure how to do that.

As far as lifts, you can go up to 4 inches of lift before those "stability tests" can be required of your vehicle. As far as I know of, there are only 3 centers that conduct these tests.
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