Having too heavy a rating on spring bars can damage the TT frame in some cases. It can also make for a stiffer and more uncomfortable ride. 3700 lbs is the dry weight or GVWR? Without detail, if the dry weight is 3700 lbs, I'd guess the actual weight of your TT fully loaded and ready for a camping trip would be in the order of 5,000 - 5,500 lbs. (should not exceed the GVWR). Tongue wt. is normally in the 10-15% range with 12-13% being about average. Should never ever be less than 10%. If you were to use 13% at 5500 lbs, your bars should be rated based on a tongue wt. of .13 x 500 = 715 lbs. It looks like 800 lb bars would be the correct size. You could go to a scale to get your actual tongue wt. but I think the result would suggest 800 lb bars anyway.
If the 3700 lbs is GVWR, then the tongue wt. is going to be more like 481 lbs and the bars would likely want to be rated at 600 lbs. If so, the 1,000 lb. bars are grossly oversized.
I would go back to the dealer and insist on a 800/8,000 lb rated E2 WDH or 600/6000 as applicable.
The TT should sit level or slightly nose down when the WDH is sized and set up correctly. Tire pressure is another important factor. The best thing you can do is go to the towing forum and read up on all the info. on installing and setting up a WDH and anything else that is a factor.
Hope this isn't too harsh. :D But do go back to the dealer and be harsh with them. :M
2900lbs is the dry weight, 3700 is GVWR. I will call the dealer and "express my frustration" appropriately. They did measure TV height and all that (i watched them install) but I hadn't realized being way oversized on the bars was such a potential problem. The E2 is a friction sway control type hitch, so there are no chains to be adjusted, just the angle of the ball. Thanks for the tips everyone, e2 does have a 600/6000 bar rating, seems like this would be much more appropriate.