Take a look at this thread that I started yesterday:
What Works (and Doesn’t Work) on an Unlifted KJ
It should answer a lot of your questions... It will also apply for you with a 2.5" lift. That is what I am doing. Once you are lifted, 31x10.50's should fit fine.
Edit: That is strange... I answered before the question was posted. HeHeHe..

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2007 Light Khaki 4x2 Sport
- Debadged - LTT CAI with Amsoil Filter - JVC HD Radio - Infinity BassLink
- Iggee Seat Covers - Black Moabs - 265/75-16 Cooper Discoverer ATP - 4.10's
- DIY Franky sitting at 23.75" - Al's 4.5 UCAs - Trimmed F&R Bumpers
- Removed Rear Sway Bar - Removed Rear Vibration Damper
- 75k miles so far...
