Let me see if I understand your situation - you ordered a two inch body lift kit and all the lift blocks are identical with regard to the height - is that right?
You're installing the lift, the "bolt-in" lift blocks are all in place and you're now installing the "glue-in" blocks, but the "glue-in" blocks have almost an inch of clearance to the frame - if I assume you're following the instructions, you should be aware that the body is not sitting on the bolt-in blocks at this point - it has to be lowered further.
Which step in the instructions are you at when you find there is a one inch space over the "glue-in" lift blocks? If you're at step #66 try lowering the body more