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1)-bike should be on jack w/wheel off ground, no?


yes the front wheel should be off the ground...

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2)-are there spacers or washers on top of the springs?


yes there are spacers..
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3)-how much pressure is there on the caps when you remove them....will it be hard to screw them back on and whats your advise if so?


no it easy just put some pressure on the nut when you put it back
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4)-i heard these springs take up more space so that you need to remove some oil. Is this true and if so how much?


no when you pull out the old springs there will be oil on them so there will be no need to take more out also when you pull out the old springs have a wire hook made up about a foot long so you can reach down in the fork tube to pull the old springs out
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5)-it was tight coil end down, right?


yes... and you will have to take your handle bars off to do this job also