Concour with TexasZJ1 and Oldfrog. Lots of Jeeps out there with bad engines but everything else good. For that matter, lots out there with everything in decent shape reasonably priced.
Can't help you a lot with the lift questions. On one of my '98s is stock ride heght, the other is only lifted an inch. If I remember correctly, from what I've read on here you should be good up to 2 inches using stock control arms, etc. Above that you're looking at shocks, control arms, track bars, etc. I think after around 4 inches your looking at driveshafts. So from personal experience 1 inch is inexpensive, 2 inches should be reasonable priced, 3 inches and more, start opening your wallet.
Good luck with your project, whichever direction you go.