1) normal
2) a CA emissions truck has 2 O2 sensors, one before and one after the cat conv.
If you gut/bypass the cat, the ECM
might see it as a problem. It is expecting to see different readings from each one, and with no cat both O2 sensors will send the same signal. Just a possibility.
3) the light problem is usually due to a bad combination switch. Look
here for some DIY repair info.
4) your local parts store should be able to get you OEM equivalent coils that will restore you to original stock height (Moog makes some) or there's plenty of lift springs that will raise you 2" or more over original stock height.
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84 4Runner rockcrawler - ARBed 5.29's, 36" TSLs, dual t-cases w/ 4.7 crawler gear, Chevys, 30 spline Marlins
83 p/u trail rig - Buick 231 V6, Weiand intake, Holley 4 bbl, TH-350 auto w/700R4 low gearset, dual tanks ...
89 4Runner - stock
http://www.cardomain.com/id/fourwd1