I have the KORE leveling kit, H2 wheels and 315-70-17 BFG KO's. There is plenty of room, only get a slight rub on my mud flaps at full lock. Many guys are running the same tires as I am without leveling on stock rims. You might have a little more rub with 35x12. 5" wide tires, my BFG's are 10. 5" wide. In that case you will need to lengthen the front control arms as was said ^ by Keith.
CD