I ran my Duster with 1.00" torsion bars and a set of funky blue Monroe's for awhile. Still way too soft! Went to 1.12's after that with Bilsteins and then Hotchkis Fox's. With really large torsion bars the shocks become exponentially more important. I'm going 1.14's next.
I don't think you'll have any issues with the 1.03's. And I'd run Monroe's before I ran KYB's. Better shocks would be better, but with a 1.03" you could probably get away with Monroe's. You'll probably be a little underdamped but it shouldn't be terrible, not as bad as being over damped.
