I did an Old Man Emu for about that price. Here's what I did:
4 2.5" Old Man Emu lift springs
New Rancho U bolts
New Polyurethane bushings for all the springs
Black Diamond A-T shocks
Skyjacker T-case drop.
I also had to cut the bolt heads off of my old springs and replace them, but my Jeep is a pile of Rust that spent most of it's life in the northeast, so you might have better luck with that than I did.
Got all this for about what your budget is, maybe a little less. I think Q-tec was having some kind of special on those springs, cause they were listed at a lower price than the stock height springs and I have read some great reviews on them, so I went ahead and got em.
The transfer case drop at that height you could go either way. I have it, but I haven't got around to putting it on yet. I know it's a simple job, but those bolts look pretty rusty and I'm pretty busy. I have noticed a little bit of vibration, but only when I am starting from a dead stop and turning (like out of a stop sign turning right). If the transfer case drop was an expensive or difficult job, I would say don't bother, but it's pretty cheap and easy, so just grab one.
PM me and I can get you part numbers from Quadratec. The old man emu kit is like 950, but the way I did it, I'm pretty sure I stayed under 700.
It seemed like a good idea at the time...