The Saggy swap will eliminate all your steering woe's and the 225 is set up for a power steering pump. earlycj5.com has some excellent writeups on the conversion (brake conversions as well).
If you look at my profile picture (not very detailed), I'm running 31's with a 2.5" lift. It looks good and the 31's are a great all around tire size.
The lift and tires are easy to price out, especially if you install the lift yourself.
The steering conversion will require some welding and fabrication. If you are unable to do this yourself, then you may wind up shelling out some cash. Do your homework, round up all your parts (used parts from the u pick yard are perfectly acceptable), have a good grasp on how it goes on there, and then get an estimate.