will coilovers work with stock shocks?
No. The stock dampers can't handle the higher spring rates of coilover springs regardless of the height you set them at.
Ok someone always has to come in and say it so I will get it over with..... yes you can in the sence that it is physically possible BUT under no circumstances is it a good idea
then what are the best shocks to go with?
there isnt like a best magical shock.
kybs are out, read this post.
http://www.j-body.org/forums/read.php?f=3&i=50260&t=50260
it was posted above already... if you read that, basically it answers all the stuff you really need to know about lowering so you dont get swindled, or are in the dark on what to choose.