I'd go with the spring spacer (BB) lift over a body lift. I have a 98 and a 97 (just bought the 97 today!!)
My 98 TJ has a 2" spring spacer lift and 1.25" body lift with 1" motor mount lift. I did the spring spacer lift first and ran 31's with no problem at all. (well, rubbed a little at full wheel lock, but added 2 washers on each side and fixed that). About a year later, I added 1.25"BL and 1"MM spacers, now I clear 33x12.5's with no problems at all and no rubbing.
The spring spacer lift was really simple, and I had never done anything like that before. I did have a buddy help me and we used a nice lift at a friend's shop, but it all went together smoothly and took us maybe 4 hours and that includes a bunch of horsing around. We didn't need to use the spring compressers that I hear horror stories about, just let the exles droop enough to pry the springs off and back on. Don't forget to get longer shocks too!