16 is fine. I wouldn't go 17 unless I was getting a 38" tire. 8" wide rim you are good too with up to a 12.5" wide tire. New rims are a good idea if you're upgrading tire size. I don't know what width tire you want, but get a 16x8 rim with the backspace around 4" and you'll fit all but extreme sizes.
As for lift, 33's you don't really need one. The backspace on the rims will take care of that, and if it ever leaves pavement trim up the flares a little. A 33 with proper BS won't rub on the street.
If you'd like a lift anyway, get a cheap little 2" spacer lift. Skyjacker makes a decent one for around $150. It's a great lift for looks. If you off-road, get a 2.5" lift. I like Teraflex and Rubicon Express. Coils and shocks are a good idea but not needed. You can get by with extensions and spacers under 3" of lift.