if you want to run 33s, especially on NorCal trails, you're going to need to swap the rear axle and the front shafts. You're also going to want to re-gear, and put some lockers in while you're at it. There goes about $1500 of you budget and you haven't even got tires, wheels, or a lift.
I recommend starting with a 3.5" Rubicon Express lift with full leaf packs, 31x10.50 tires, tow points, and skid plates. That would be about $1500 and take you some surprising places. Wheel it for a while, learn to drive offroad, get stuck a few times, then figure out how you want to upgrade more. Then just by adding a little to your existing lift and trimming the fenders you could run up to 35s.
Check out the Sierra Chapter board, come to some Meet n Greets and some trail runs and just sit back and learn for a while.