3" in front 2" in back

These 2 statements kind of contradict each other. $500 is going to get you about bottom barrel. I would say get adjustable Bilstein 5100s in the front set at 2.5, then 5100s and an add-a-leaf for the rear. Might be a bit more than $500 but should be close. A lot of guys run that set-up with positive results. Front will be a little stiff. You could buy aftermarket springs as well so you don't have to pre-load the bilsteins but that'll add money to the purchase.

 

If you do decide to get blocks get the tapered ones to help w driveline angle. Instead of a single add a leaf I would get the icon or wheels 3 leaf which will give you a better ride than a single leaf.

 

Get all 3 of these for a total of $465 plus shipping and you'll have a pretty good set-up.

 

I looked at the items it looks like a good deal....
I wanted to try and get a 2" lift in the back but i guess this will work for now.

Thank you

 

Stay away from blocks and leaves together, period. They suck, even just on the street.

If you want cheap, front spacers can be ok, they have issues but not as bad as blocks in the rear.

Given your $500 budget heres what i recomend
bilstien 5100 for the front, preload them to the hieght you want (i have them in the 4runner, and they arent bad at all)
http://www.autoanything.com/suspens...ngid=274x543&gclid=CObBv_XY_bkCFdSd4Aodnz4AcQ

http://www.tacomaworld.com/out.php?url=http%3A%2F%2Fwheelersoffroad.com%2Fproduct%2Fbilstein-138992%2Fbilstein-5100-height-adjustable-front-strut-set-c477%2F

Add-a-leaf for the rear (important to get the LONG ones) i like this brand myself, they are a little bit stiffer than the fabtech ones but they are longer, and hold up better as well. they are not overly stiff like a short leaf (i broke a fabtech recently) and they match very well with the 2 leaf plus overload stock pack. price is good too
http://www.ebay.com/itm/1995-2011-T...fits=Model:Tacoma&hash=item3a6e43d757&vxp=mtr

these two together, your only at $270 including shipping (wheelers is cheaper so it depends on the shipping price) so you have money left in your 500 for a propper alignment, and if you want you can upgrade your stock springs in the front instead of using yours, or you can upgrade your rear shocks to 5100's as well, which is a good idea

http://www.tacomaworld.com/out.php?...in-5100-rear-shock-set-for-05-current-tacoma/