would it be ok with a 2 in. lift and stock 16x7 rims without any rub at full wheel lock? also what should change my gears to i have 3.55 posi with the 4.6 liter.

 

What kind of lift are you talking about? If you are referring to a body lift, go ahead and get the 3 inch kit. As for fitment, yes they will fit at stock height using the oem wheels with some minor rubbing on the frame at full steering lock. This is caused by the narrow oem wheels and no amount of lift will change that. Only a wider aftermarket wheel will eliminated the rubbing on the frame by pulling the tire outward slightly. However, you will need a lift to fit 315/75-16's on wider aftermarket wheels.

 

im talking about a suspension lift. would some 1.5 inch wheel spacers stop the rubbing in the front

 

The only 2 inch suspension lift I know of for the 97-03 4x4 are those reindexed torsion bar adjustment keys sold as leveling kits. I'd suggest staying away from those. THey allow you to put way, way too much preload on your torsion bars which causes premature ball joint and CV joint wear and destroy your ride quality. If you use a wheel spacer, it will push the wheel outward which will eliminate the rubbing on the frame, but they will cause rubbing on the wheelwells. The only way to fit 35's on a stock 4x4 is to use the oem wheels.

 

I'm with wandell on this one...

I would get the 3" body lift and put the 315s on a 10" wide rim. You can tweak the torsion bars a bit and trim some inside panels just a bit to get it how you want it.

It's a sweet setup and what I used to have on my old ride:

 

I only had to trim a little off my front bumper's lower valance with that setup.

 

Will tightening up the torsion bars damage anything in the front end? What size does a 285/70/17 equal out to be, 33?

 

A 285/70-17 works out to be a 33x11.50-17 tire.
Cranking up the preload on your torsion bars with the oem adjustment keys should not cause any problems. Just look at your CV joints and make sure the angles are not too extreme after you get through. It's the aftermarket adjustment keys that allow you to put so much preload on your torsion bars that your CV and ball joint angles get extreme.