a sway bar will improve handling and help limit body roll when cornering.
i've heard of people cutting 3"s out of their stock sway bar , sleeving it, and welding it back together (depending on how low you plan on going, you may want to measure how far the sway bar hangs below the beam now and take that into account to see if you'll have clearance when you lower the vehicle).
i'm pretty sure geoff/jim/airspeed used to make/sell narrowed sway bars...i'm not sure if geoff still does that anymore.
franklins vw? cb performance?