I'm 5'6" too. My '01 Ultra was factory height. On my '06 CVO Ultra the previous owner lowered it with StreetGlide shocks and Progressive springs up front. I don't like it. I am scraping everything. I had to remove the floorboard extenders and raise the boards to the highest seetting because I was hitting the bracket on the pavement. Saturday I broke off the kickstand spring coming off an incline and making a sharp left turn.

My advice is to keep the height stock, get a lower seat and put taller soles on your boots.

 

This is what I think I will be going with:

http://bitchinbaggers.com/products/drop-shocks/

 

I'm a short guy also, i got the tamarack lowering kit, to bring mine down, and haven't noticed any difference in how it handles.

 

I put the LA Choppers on my Ultra. Shock angle and travel stays the same with these. I made sure there were no clearance problems by removing shocks, putting wood block under swing arm and then lowering the frame until the distance from the shock bolts were the same as the collapsed length of the shock. Then spin wheel.