after lifting my X and installing bigger, stiffer shocks, i noticed the rear sway bar is putting one helluva dent in the right rear shock. can i just take the rear sway bar off, or is there an easier way to fix this problem?

Yes you can take the rear swaybar off. Some say there is a difference some don't. I have mine off and do not feel any difference but I have had mine off for a while now.

Somewhere I read you can turn the shock upside down to help prevent this also.

I've removed my front and rear swaybars, and don't notice a whole lot of difference... I also put on bigger tires and heavier wheels a few days before the sway bars, so that could be why I don't notice... try it, and if you don't like it, it's not that hard to put back on... I think it took about 10 minutes to remove...

My shocks are mounted upside-down to how most mount theirs (ie with the shock boot on the bottom). However, the Bilstein label is right-side up, so I'm not sure if there's a right or wrong way to mount them anyway.