You should be able to clear them. You figure you're adding 2" of tire so if you can clear another inch on each side of your fender you'll be fine. Kiss your mileage and power goodbye though.

 

Yep, definitely make sure you run the numbers and do your research before you upgrade your tires. That's definitely part of why I've stayed w/ 31s.

I'm pretty sure the 5.29s are the largest drop in gears for your current differential/axle setup. But you're probably going to need to change out your front end anyways with you current setup, so just the add'l cost of your backend I guess.

Your 4cyl tranny and a few other driveline components are less robust than the V6 options, so will probably fail quicker/consider upgrading pre failure too.

Look here for parts/pricing options on what you'd like to do (others too but a good baseline part availability/pricing resource): http://www.marlincrawler.com/

Look here for info on stock diffs: http://www.brian894x4.com/Gearratiosanddiffs.html

Look here for a gear ratio calculator: http://www.grimmjeeper.com/gears.html (make sure you know/take into consideration your engine's powerline at the speed[s] you'll need the most performance)

And 4crawler has a pretty good resource on lifts too:
http://www.4crawler.com/4x4/ForSale/BodyLiftKit.shtml
http://www.4crawler.com/4x4/ForSale/DiffDrop.shtml

 

Looks fine with the tires already on it.

Body lifts and bracket lifts suck, and you're pushing the limits as it is.

Time to SAS and upgrade a lot of drivetrain components if you want to go bigger.

 

Remove all but the 4in suspension and cut out the fenders and get 5.29 gears and 38's and sas