[twinmill28]

Nah, it wasn't my idea---I was just putting two and two together, literally.
I just really liked your idea of leaving the moldings on, but thought moving the rails out would be even better.
I've got access to a slick liquid cooled metal bandsaw, so cutting the spacers would be cake! Clamp 'em in and let the saw slowly drop x 20 or so. Drilling out the half inch holes x 20 would suck, not as much on a drill press, but none-the-less it would suck.
I'd recommend finding a good nut and bolt supply place if you've got one in the area. This will save you ALOT of money versus buying grade 8 hardware at Lowes or Home Depot. We had a place in Utah, Nut and Bolt Supply (Of all things!) that had incredibly cheap prices---I was able to get a bucket load of stainless stuff for less than half of Lowes!
I wasn't going to pursue moving my rails out as I've got the U-steps and they've been working well for me. But the more I think about it, I'm really tired of touching up and the rock chips on the body from the tire flinging rocks. I'm thinking moving these out an 1-1/2" will give some good protection. Plus, it just occurred to me that along with access to the saw, I've also got access to the square tube, so I'll just need to buy the hardware. Win win!