Lift wise: 31x10.50 is the largest you can go, and you'll get some rubbing at full turn but you can just add a washer on each side of the steering stop, or if you getting new wheels get ones with more backspacing. If you plan on disconnecting the swaybar you'll also have to extend your bumpstops so the rubber doesn't get cut up on your fenders when flexing. You could go with a 2 inch budgetboost and clear them though ($100 and two hours of work, if even)
Wheel size: Bigger the wheel, the more expensive tires are. And if you plan to wheel it and air down, your going to want more sidewall. Majority of the rigs here run 15x8 rims, gives a nice balance of rubber to wheel look wise and is function. Saves a boatload when you do get the bug to go up a tire size too.
Poverty/College Budget 2004 TJ BB, 1.25" BL, MML, JK shocks, 313x12.5 Federal MT's
If it can't be fixed with squats or fish oil...your probably gonna die (u aware?)