This link will give you good instructions and pics http://s10-4x4.com/EasyLift
Start by turning the two bolts 4 complete turns, this should yield 1" of lift. Drive around and see if this stops the rubbing, very light rubbing on the inner fender can be cured with a few wacks with a hammer.
I don't like the idea of cranking the bars 2" 'cause it's hard on the front end. IMO 1" is safe and 1.5" is the max.