Okay, a couple things here.
I am running woodcrafts on my S2R with risers. Yes, you will need spacers for your coffin reservoirs. If you have an S2R 1000 with pee-cup style reservoirs, you won't need spacers.
As far as lowering a headlight/gauges... you don't HAVE to, at least with the woodcrafts on an S2R800. You CAN if you want to, it will look better. You DON'T have to weld though, you can use some fancy fork collars that hold your headlight on:
http://www.bellissimoto.com/CNCRacingMisc.htmlhave em on my bike, they're awesome.
you would just need some bolts/nuts to hold your gauges on UNDER the triple. you can drilll your triple out to acccept m6 bolts like mine, or you can thread an M5 in through the bottom.