I've heard bad things about body lifts but are they really something I should stay away from or am I being told the wrong thing?

This answer is kinda dependant upon the type of rig you are looking to build.

It will vary depending on the individual and situation.

Do I like them NO. As a matter of fact, I'm taking the 3" BL off the jeep I just bought.
A body lift puts alot more stress on parts like the actual body mounts. That can lead to problems if one breaks.
If you plan on doing any kind of rock climbing or rocky rough terrain driving, then I would stay away....far away, from a BL.

For muddy, flat, smooth terrain, you will most likely be ok, but I still dont like them.

It all comes down to what you want.

I second Stainles' response. I don't like them either. A 1 or 2" body lift may be ok for mild off roading, but I would stay away from the 3". Daystar also makes a 1" body lift that is polyeurothane. It is a body mount bushing and body lift all in one. It is all depending on what you want to do with your Jeep. There are other inexpensive options to fit larger tires.

I am running the 1" Daystar BL.
I personally would not go any higher then that.
Unless it is only going to be used as a Mall Crawler.
My $0.02

Another vote for no body lift. The Daystar body bushig kit is definitely worth it.

Sorry to dissapoint everyone, but i am a HUGE fan of the body lift. Cheapest way to get clearance. Now remember, i live in the south, no hills or rocks to be found anywhere, all we have is mud and water. It all depends on where and how you wheel. I wheel hard, but its all on soft flat terrain, there for, i love body lifts, have one on my jeep now, had one on my dads jeep, had one on my bronco, one on my dodge ram, and one on my Z-71. It all comes down to personal preference, and where and how you are going to wheel.

i agree with wrangler hawg on that point, if you're done more muddin than trial ridin, a body lift could be the best way to go.

i wouldn't go over 1"

Just one more point i want to make, like i said, i've put 3 inch body lifts on pretty much every vehicle i've owned, except my Superduty (only because its a diesel). I have not had one problem with any of them, and one of my trucks, my Dodge Ram that sat on 40 inch boggers that had a 3 inch body lift on it, i beat the crap out of it, and it was my daily driver, and never once did i have a problem with it.

I had a 2" body lift on the Dakota I used to have. Actually, it's the only lift I have ever had. It worked well for me. Like said before, there are no rocks around here, just mud. It looked great, too. I'm sure it would have probably started looking a little strange over 2" though. I only put the body lift on to clear my modest 31" tires. That's all you need for mud, baby!!