Looking good so far!
On shocks, I will echo what others have said. Bilstein 7100s short bodys are a nice choice. F-250 shock mounts are the best bang for the buck. You'll want to mount them inline with the shocks at ride height, which is generally vertical.
I like having 14" travel shocks, but 12"s get the job done. I have 14s front and 12s rear.
Given your layout, it will be easier to package 12s. To get 14s on my truck, I needed the 2" body lift to get the shocks up high enough. This required welding a bracket to the frame that the F250 shock mounts bolted to.



To figure out where to mount your shocks, you need to put weight on the suspension and figure out where the truck sits at static ride height. Then measure/look at various points on the front axle and figure out how much uptravel the axle has before it runs into something. You'll want to set your shocks so that there is still about 1/2" (1/4" MINIMUM) of travel left when the axle bottoms out.
Ideally, you want 4-6" of uptravel from ride height. This gives you enough travel to soak up bumps without constantly bottoming out. 4" minimum, 5-6" is ideal for our rigs.
Also remember to set your bump stops so that they engage the axle about 1" before it runs out of travel. The stops will compress quite a bit under a hard hit.
Cummins R2.8 diesel, ZF5, AtlasII, HP44/BB9, ARBs, coiled / linked suspension, 37" KO2s, full cage, bumpers, etc.
Build Thread:
http://www.coloradoclassicbroncos.com/viewtopic.php?f=3&t=5420Average 23.5 mpg, Best tank: 25.1 mpg