All the lifts (Rancho, Tough country)are purly for looks. No one yet to make a real off-road suspension.
I turned my torsions 2.5 turns, clears 35" w/ no rubbing front or rear!

 

Rough Country makes a 5 inch lift that seems to work pretty well. I don't know what the price is for it, but I have seen pictures of it in action at a Hummer dealer demo course and it seemed to be pretty good. The H3 was able to tackle the H1 specific obsticles with no problem. It also had 37" tires on the factory rims