As Imped noted, spend some time reading, because there is a wealth of knowledge here. If your considering tire options and want to minimize costs, keep your factory rims, install a 3" suspension lift, a 1" - 1.25" body lift, and run 33x10.50 BFG A/T tires. I say the 10.50 tires because, based on your comments, I'm guessing you wont be doing much rock crawling or dune running (33x12.50 would be better suited for this).
- Sticking at 3" and below suspension lift will allow you to run without a Slip Yoke Eliminator (SYE) and give you a good ride height for the LJ.
- Running 33x10.50 tires will give a a better street ride and less of a hit on MPG (Tire choices are very limited, but BFG makes two good ones (KM2 and A/T))
- Sticking with the stock wheels (Ravine) will allow you to run, in my opinion, the best looking wheel Jeep had. Plus minimize cost, by not having to purchase new ones.
Some things to think about:
- Going to a 33" tire won't be a big impact on gearing, because you have a manual
- Most suspension lifts lower the transfer case, which is considered bad. It doesn't hurt the drive train technically, but lowers the transfer case, thus negating the lift, and it creates a "shovel" effect with the skid
- The body lift will set you up for a tummy tuck (do research here) later
- You really should consider a SYE, and driveshaft in the future. The longer length of the LJ driveshaft can absorb the lift without negative effects, but a SYE is just a good idea
For what it's worth, I ran a similar setup on my TJ for years and loved it. When I ultimately switched to a wider tire, I definitely noticed that I lost some of the "nimble" steering feel.