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talked to guy at spring shop again. he said 3.5" lift with arching wont effect the geometery of the steering. wont need a drop pitman arm or change driveline angles. replace broken spring, add a leaf and arch for $700 canadian. i think thats like $600 american now isnt it?
if you're going to buy springs, buy GOOD springs, Rough Country, Pro Crap, Superlift, and Skyjacker are NOT good springs. Tough Country or BDS is the way to go.
the numbers don't lie. high spring rate = rough ride.
http://coloradok5.com/springratetable.shtml
BDS also offers a no questions asked lifetime warranty.