If you use it as a daily driver, you don't really want to modify it all that much, that is unless you don't care about the price of gas. My 97 used to get around 22MPG. After the 4" suspension lift, 2" body lift, Atlas II transfer case, and all the other stuff I put on it, I'm luck to get 16mpg. I stopped using it as a daily driver along time ago, because I commute 144 miles (round trip ) a day.
There are plenty of guys that have body lifts and torsion bar twists, with 33's.
You don't really need a suspension lift, if you are just doing moderate off-roading.
1. Put a real transfer case in your truck. You need 4Lo to wheel.
2. Buy a rear locker. That will give you more off-roading capabilities than bigger tires and a lift.
3. Get a front locker and do the brown wire mod (do a search on brown wire mod). This will give you true 4WD, provided you get the rear locker too.
4. If you still want bigger tires, do a body lift and torsion bar twist with Warrior shackles. You'll be able to run 33's and might be able to run 35's (look at Gerald Jarrett's truck). Remember chances are that if you change tire size, you'll also have to change gears. If you don't already have 4.10:1 gear ratio, I wouldn't go any bigger than 31's.
Just my $.02
I hope this helps.
