The 2" spacers do work and work pretty good. You'll need longer shocks and bumpstops which should come in the kit. I've used them on my '98' and '2000', and would recommend them for a budget.
Remember, everything you do to a jeeps suspension effects something else, once you start lifting you must be committed to spend $$$ to address them all or your jeep won't like it. So 2" spacers w/ shocks, is about the cheapest and easiest way to add lift. Id stay away from body lifts, they look stupid and screw up your jeeps balance. I've had several jeeps and lifted most of them, but the best thing you can do is to install lockers. I know alot of people will argue with me, but a jeep with lockers will blow away one without. A jeep with a lift looks cool, but a jeep with lockers IS cool.
Also don't determine tire size by wheel well space. It's gear ratio that really matters
Hope I've helped