http://www.ramforum.com/f58/lift_basics_2nd_gen_4x4_rams-25153/
First I'd to apologize for not responding to messages. I don't hang around on forums much and threads like this are the reason.
You can't turn 6 into 9. So you can't make 3 inch lift parts into a functioning 7 inch lift.
I'm sure you can cowbilly one up but trying to enjoy driving it or using it off roading would be frustrating at best, dangerous at worse. The old thread link above discusses lifts up to 5 inches, and that's about the limit for the few cookie cutter lifts you can find for 2nd gens.
Magical engineering things happen after 5 inches of lift because of the way a stock Ram suspension/drivetrain is built. I use the turn magical sardonically here because some of you guys think you can thwart the pinheads, wizards and experienced shade tree wrenches by cobbling up something simply to impress your buds or some redneck chick. Don't fret. Once your magical mass of incorrect parts starts to destroy other components in your suspension like popcorn you'll trade or swap for another brand. The Gods help whoever you bless with your mechanical mayhem.
Done correctly with the right matched components, a 7 inch lifted ram is a thing of beauty to watch and drive. It rides like a luxo, handles almost Porsche like with the right tire rim combo, scrambles through mud like an alligator and cruises over rocks like a Tarantula. Drive shafts don't bind, tires NEVER touch sheet metal. The limiting factor is your differentials on a 1500. A D-44/9.25 combo was never meant to take the weight of a 37" or up tire. I don't care that you run them. The pinheads didn't build them that way...that's why they made 2500 and 3500 trucks with bigger diffs.
Lastly, only a couple of true believers in 2nd gens still build proper 7 inch long arm lifts. One is Danny at Dodge Offroad. He's been building big Rams before some of you were born. Yeah his lifts aren't cheap...but lifting a ram 7 inches the right way never was.
To the OP: make it easy on yourself...install a 5 inch lift with the correct parts, put 35's on, and don't ***** when your transmission shells or your already crappy mileage goes to complete shyte. If you don't woo the redneck chick you can spend the money you'll save on some decent gears.
Good luck!