Thanks for the suggestions. I know about the paint, looks nasty doesn't it!! But it's not my paintwork; that's the OEM paint job on the body.

I'm going to be stripping it down, sanding lightly, using modeler's masking tape (really really tiny tape) and/or vaseline for parts that are too small to tape off, and airbrushing it. Then I'll hand-detail the rest.
Lowering- Actually, this was easy. I determined how low I wanted the body to be in relation to the ground and I cut new slots with a dremel. I did the front and the rear this way. The front slot doesn't show in the front, the rear does; I'll be filling and/or covering with a license plate where the old slot was. To get the tires to fit, I had to dremel the CRAP out of it. You'll see when you try and fit it in, you'll notice where you have to sand and dremel. I'm not really 100% happy with the rear passenger side wheel well; I could've done a better job and it's a bit too squared off.
Wheels: Those were the easiest part

All I did was get a really thin flathead screwdriver and use it to 'cut' the spokes where they meet the rim and where they meet the hub. Just use pressure and push, soon enough you'll hear a 'snap' and it's done. Be VERY careful on the wheel with the gear. I used an exacto blade for that one and did it carefully.
The main trick on lowering is to sand/dremel out the inside of the wheelwells until they are paper thin to avoid rubbing. You'll also need to dremel the wheel well towards the rear on some bodies if you fit it the way I did.
Hope that helps

I gotta get me a few more Bit bodies so I can try some new techniques..