Just cut till you have enough clearance. If your still rubbing keep grinding down on it. I took a little more than that when I did it.

 

ok thanks.

 

heres a pic of a little bit more cutting hopefully the 36.5 will fit

 

depends on how much lift u have as well... and there's an alignment that can move the tires more forward. I'm gonna do that when I get my real wheels

 

just cut till it fits.....dont make the tires fit the truck make the truck fit the tires ......

 

Why in the world did you cut the inner liner?? Just heat it up with a heat gun and reshape it. That's what I did and it looks like I never touched it. Don't forget to undercoat where you cut, to prevent rusting.