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Yup.  A leveling kit is a straight up bad idea.

I pulled mine out yesterday.  Wait till you see the pics of what the spacers looks like now; you can see daylight thru the cracks.  We also took apart one of my shafts to see what kinds of damage might have been done... they're smoked.  Again, wait till ya see the pics.

I'll update my thread probably tomorrow or as late as Monday.  Stay tuned over there for all the details:  http://www.fordraptorforum.com/f5/40k-mile-suspension-checkup-binding-blown-shock-bent-frame-10550/