[buymeabmwm3]

Interesting that you want your ride height INcreased. Most people get springs to lower their car.
Not sure if your stock shocks (I assume they are stock) have a maximum extension distance. If they do, your ride height may not have incraeased because the shocks are already at their max extension. Other than that, shocks don't really have anything to do with ride height. They will adjust to any ride height within their limits. That said, you need to be sure that whatever spring/shock combination you have is appropriate. Too small springs on the wrong shock will cause your car to bottom out easily. Check with the company you bought your spring through, or any local performance shop.
As far as blown out shocks, they may be worn but probably not blown entirely. If they were blown your car would keep bouncing after you hit a bump in the road. Visually check the shocks to see if there appears to be fluid leaking out of the them.