Sounds like it may just be too low and the struts are bottoming out. I would try raising it a little and seeing what happens.
Another thing is that the arm may be connecting with something in the front end or you may be hitting the inner fenderwell with the tire....put your hand up between the wheel and the fender well and bounce the car a couple times and see how close it gets, you should be able to judge if its hitting there from that simple test.
BTW leaving only 1" all around is extremely low even for Teins so my first answer is what I am going with here.
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