James -
Wow, a '95 and still under warranty?
Don't do any mods unless you're ready to spend a lot of money upgrading the vehicle. From the look of things, it doesn't look like your dad is going to open up his check book for any improvements to the vehicle. The one improvement you can make to your Explorer without any cost is the airbox modification. Check it out.
Even replacing the tires with larger ones could end up costing you/your dad a lot of money because a) new lower gears may be needed to retain the performance of the vehicle or it may drive like a snail, b) the possibility of breaking your rings and pinions increases because of the additional stress, c) increase wear and tear (hence, replacement costs) on your bearings, etc.
By the way, there is no 5.5" body lift, only 2" or 3" body lift kits. Suspension lift kits are available in 2.5", 3", 4", 5.5", and custom. They run from the hundreds to the thousands, depending on options. Installation cost is extra of course, add another $1,000 for suspension kit or so for professional installation.
You could easily spend $2,000 - $20,000+ just in the mods.
It's a lot of money once you start with the modifications. Don't take this the wrong way, I'm not trying to slight you by any means, but hold off on making modifications to the vehicle unless and until YOU (not dad or anyone else) can afford to pay for all the mods, maintenance, and repairs yourself. Of course, this is only after any and all other financial responsibilities you may have. Meanwhile, enjoy the vehicle as is, read-on in this web page for tips on maintaining the vehicle and learn to do them yourself.
If this sounds like it's coming from an old fart, it is!!!
[This message has been edited by kvo (edited 05-10-99).]