I want to say thank you to everyone. Your comments and suggestions have helped my noobish ignorance quite a bit. If anyone has additional comments they would like to add, feel free. I hope this will be a great thread to point to later on for any noob in suspension.

 

After reading through all of the posts, this is how I would tackle it.

Wheels:
Centerline Storm - 17x7 +42 4x100 - $400+

Tires:
Your Choice - 205/40/17 or 215/40/17 (Nitto 555 in 205/40 is my preference.) - $430+/-

Spacers:
OTG - 3/8" - $70

Springs:
Tanabe DF210 - $150

Rear "Sway Bar":
Progress Technology - $140

Front Strut Brace:
Your Choice - $150+/-

All of this together is well under $1400 before shipping. Throwing the shipping in should still put you just below your $1500 mark. And if you can save on tires like you say you can, you'll be even better off. And you would have one sweet handling car for the price. Then later on down the road, when you shocks and struts begin to break down you can spend the extra money on some replacement Konis.

Good Luck.

 

Strut tower brace. Easy to install, great feel, cheap.

I have the Hotchkis. I don't think they are bouncy at all, very solid, perhaps too solid, but definitely not bouncy.

 

IMHO, the 205/40/17 looks a bit small. A few on this site have regretted that that they didn't go bigger. Remember, the stock US tire is smaller than the stock Japan tire on the xB. I think you are better to error on the large side. The 215/40 or the 215/45/17 works and should be a bit more comfortable. They are more expensive though. The 215/45/17 can rub on some cars (but most don't). Don't get me wrong, I like small tires, but on small fat rims(15's). That white xB on Van's OTG site is one sweet ride....

For the front brace, you should be able to find a DC Sports strut bar for under $100. Good bar for the money.

I would spend a few more bucks and get a pair of rear Koni's. You can also go with a full set of Monroes and stay near budget. Don't know if Monroes handle the lowering that well over the long haul. At their price, they are worth a try.

Have fun!

 

The reason I mentioned the 205/40/17 is two fold. First, it fits a 7" wheel a little bit better than a 215. Yes, it is a slightly smaller than the stock tire, but by less than the widely accepted 3%. And second Nitto does not make a 215/40 in the 555, but they do make a 205/40. So since I recommended Nitto, I figured I would give him the right size as well.
And just so we can see the tire difference...

185/60/15 (USDM Stock) = 23.74"
185/65/15 (JDM Stock) = 24.47"
205/40/17 = 23.45"
215/40/17 = 23.77"

 

After the stock shocks go , what replacements are recommended ? stock again (which will cost God knows what from the dealer) or an aftermarket one like Koni (I think thats how its said)