Moved this out of the Official Lift thread so that it gets more visibility.
You've got a lot of issues to work out...
First, don't ever listen to salesman on the phone for advice on any Jeep without doing your research first.
Second, the 265/70/17 is a 32" tire. To run that size there is a lot of work that needs to be done on the KJ besides pounding the pinch weld. Good deal of fender liner trimming, and probably relocating the washer bottle.
You should also do some research about Rocky Road Offroad while your at it.
Here are you major issues...
- 32" tire - Lots of work to be done to be able to fit.
- 17x8 rim - Though it can work depending on backspacing you will always have more rubbing than if you went with a 7" wheel (265 tires still recommend a 7" also).
- RRO OTT lift - Lots and lots of issues with OTT lifts. You must run extended front bumpstops with this lift or it will kill you front shocks very quickly.
What you can do...
Install a real lift - to make a 32" work, you are going to have to go with All J Product's Frankenlift, Jeepin By Al's 4" lift, or a homebrewed OME/Clevis lift/Daystar strut plate lift. Or, you buy new tires, for your size of lift recommend nothing larger than a 30.5" tire (16" tires will be cheaper, and again a 7" rim is better).