And it's not horrible work?
Well, it's not in the house, the wife and kids aren't there to nag, and there is usually a cold beverage of choice in the one hand, so in that regard, no, it's not bad.
If you have the tools an axle swap is easy and a re-gear is as well, but requires a much greater attention to detail and a few more specialized tools. The above advise is good IMO 4.88's would be ideal, but don't over look swapping in a set of 4cyl axles, as most anything will be better than the 3.07's you have now. When I did mine, I purchased a whole jeep and parted it out. I got my money back as well as the 4.10 gears, half doors, spare hood, family bar, etc. that I wanted, the fact that both were red was a bonus.
If you're just starting out repairing and maintaining your own vehicle I would advise the axle swap, if you've been at it a while, then a gear swap might be the next step in your education. Keep reading, do some searching in the archives and then decide which is the best direction for you. And as suggested, fill out your profile, few folks like to help those that don't do for themselves.