Staggered Wheels, + Lowering

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your in the wrong thread for an 88. you need to be on the foxbody threads. this is for 94-04 stangs.
but whatever.... you dont want to ditch the quad shocks. you could but it not recommended unless you are doing a torque arm /panhard bar setup. quad shocks stop the left / right movement of the axle. you could roll the fender and flip the quad shocks to get a little bit more room. simply put the wheel is too big for you car. there is a write up here. http://www.americanmuscle.com/fitting-larger-tires-on-a-fox-body-mustang.html
 
Since you have lower control arms installed you can remove the quad shock or outer shocks and they don't prevent side to side movement they are there to limit wheel hop but with upgraded control arms that will take care of that and yes I did this on my 89

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yea, your right i dont know why I keep thinking the quad shocks do that. Yes I know that it prevents wheel hop but for some reason, when I think that, it always end up typing "prevents left/right movement" because thats what it feels like.