Use this to calculate your tire size differences.

http://www.discounttire.com/dtcs/infoTireMath.dos

 

You should be fine with regular driving.

The problem with a level kit, is that's it's a cheap fix for fitting larger tires. It extends the front suspension without lifting any of the components, so the angles of some key components like the CV axles and front driveshaft are forced to work at a greater angle than they were designed to. A true lift kit, while costing a LOT more, if designed well, has replacement components for some of the weaker ones that come stock, as well as having replacement brackets to re-position many of these components to stock angles.
My suspension lift for example, has a complete sub-frame to lift the truck on and has over-sized steering knuckles and tie rod ends that are greasable.

In most cases, a simple level kit or cranking the t-bars is not a major concern IF you don't go crazy with the level, hence why I don't recommend more than 2".

The increased angles coupled with the weight and rolling resistance of larger tires will wear front end suspension and steering components faster, but if not taken to extreme, won't do so significantly faster. For example, if a tie rod was gonna last 60k miles, the larger tires might wear it out in 50k miles. Price you pay for running bigger meats.

Personally, I hate the "rake" look that these trucks have stock and like a larger tire. I hunt/fish/camp and ATV ride off the beaten trail, so I have installed a lift of some sort on every truck I've owned.
If you don't have a use for a lifted truck and it's simply for the appearance, you have to weigh whether losing a couple MPGs and possibly having to replace a couple of wear items sooner is worth the look to you.
To me, it would be.

As for the transmission, yes the transmission will work harder with larger diameter tires, this is because the effective gear ratio will decrease when you install a larger tire. This will reduce engine RPM at a given speed and force the engine and transmission to work harder.
Is this a major concern, not really with only going to a 34.5" tire, but you WILL notice a slight loss in both performance and fuel economy.

There is a fantastic fix for this, but it doesn't come cheap. It is to re-gear to a gear ratio that gets the engine up into the power-band faster and keeps it there longer. More RPMs means the tranny shifts less and you can achieve the same speed/acceleration with less throttle. If your stock ring and pinions are 3.92s the effect of the larger tires on performance and gas mileage will be minimal, if you have the 3.55 gears then the effect will be worse.

The other thing you may want to consider is if cranking the T-bar keys, you may wont longer shocks up front. At 2" your stockers may be ok, but they may bottom out on you on bumps. If choosing a level kit (re-indexed keys) you may want to choose a kit that includes shock relocation brackets that will move the shocks to allow for the added height.

Now I hope I haven't thoroughly confused the hell out of you and this helps...

 

Hey hammer. Your suspension you are discussing, where did you get a majority of your parts? Where's a good place for solid parts at a great price? And roughly how much would you spend on a suspension to raise the truck and the parts? If you don't mind how much roughly for your setup?

 

I have the Rancho 4" suspension kit, all inclusive. When I bought it was right at $1700 and they were running a deal that included the four Rancho RS9000x shocks for free. I also picked it up at a 4 Wheel Parts store (warehouse deliver to the store was free at the time, I shudder to think what freight of a 300 lb. kit would have been to my door).

Solid kit, unlike most, it retains all stock angles, has a complete boxed sub-frame as opposed to just a single or dual crossmember. Very happy with it and the customer service from Rancho is 2nd to none.
Last year, I blew a tie rod end - almost 5 years after purchase and I installed it. They not only sent me a new one under warranty, but included a replacement for the other side as well. NO CHARGE...

As far as replacing stock suspension components (tie rod ends, ball joints, etc.) I've always liked Moog parts. Unlike the Mopar crap they use nowadays the Moog parts are greasable...

 

i know this is getting OT, but i went to rancho website and was wondering if you could point me in right direction. i don't plan on doing any off-road, i would like a tire that fills up the wheel well and slightly sits outside the fender. NOT tooo much tho, cuz i don't want the panels getting torn up. i still feel that a level is a "half ***" way due to the parts wearing down prematurely. i really did not want to spend a lot because i was going to put that to the tires and wheels. however, if the suspension needs the funds first, then i'll go that route.
'
http://www.gorancho.com/suspension.p..._ram_1500#lift

 

so i've been reading, if doing a level or UP to 4in lift, you can use rancho 5000...if its 4in or higher, its 9000xl..

would you purchase the 5000 even with the 4in lift?

searched around where i just moved to and found this site. they have some deals going on right now too. if i go this route, get 34in tires, i wonder what else i'll need to do. thats a downside to doing suspension bc then something else will need to be changed like gears, tranny, etc...

http://www.4wheelparts.com/Lift-Kits...ght+(in.)_PQ=4