Thanks for all the input it was helpful ... thought I would post a pic of the jeep after it was finished. I am very happy with the outcome and will be hitting the beaches this summer.
I ended up going with the SkyJacker 2" Spacer Lift Kit with Hydro Shocks ... I put very few miles on it ~25000 in 3+ years so hopefully the cheapo shocks will hold up. I was able to do the work myself, learned a lot and hope to do more in the future.
I ended up keeping the stock rims and going with 31" Interco Trxus MTs. I went to a local shop here in MA (Elias 4 Wheel Drive Center) for the tires and a front end alignment. which did awesome work ... I would highly recommend them to anyone!! They also installed a track bar relocator as there was some rubbing on the passenger side. Again, great people, great work!
Here she is: