I'm 3 years into my rig, and have spent as much time reading about mods.
The first thing I would do, if I were you is this:
1) Fix what came broken from the factory. Steering brace comes to mind. $40. Replace any sagging springs and/or leafs (new or source good used ones). Refresh stock brakes (drums/discs/calipers/wheel cylinders). Swap out all fluids: brake, steering, diffs (clean them out and inspect them), tranny, etc. Gte rid of the rear sway bar. Install disconnects for the front sway bar.
2) Go out wheeling with it after step 1. Get 5, 10 or more stock friendly runs in (more is better). That might require some tow points up front so that you don't ruin everybody else's day on the run, if you get stuck. So a new front bumper might be required. If you don't have a hitch, you may need to get a new rear bumper or just get a used hitch and install it to at least have some kind of rear tow point.
3) After seeing what you can and cannot do with your rig, and assuming the guys/club you go wheeling with help you along, you can tell the difference between driving skills and the capabilites of your slightly stock rig. If money isn't tight, swap out the stock all terrains and get some mud terrains (or whatever tire is better where you wheel: rocks, sand, snow, mud), and repeat step 2. Note the difference.
4) Figure out what you really want to be capable of doing after getting some trail experience. Bigger tires without lift gain you a bit more (but ratio of cost vs increased capability is not good.) For a stock rig, a front or rear locker is the bomb. Make sure you put one in an axle worthy of it's keep. 8.25 non-lsd is good (your 2000 has a 29 spline, if you have the 8.25). You'll see a huge difference on the trail. Number one best mod. (I hear, the second is hydro assist steering, but that's way later).
5) Keep wheeling, one mod at a time. After a locker, get a lift. That's a biggie that involves deciding which size rims you are going to get (if a brake upgrade is in your future), lift size vs tire size (fender trimming or not), lower gears to accomodate the tire size (fuel economy if DD, or getting into the right power band on the trail for the 4.0 L)
6) Have fun, make one mod at a time (where possible), and enjoy the difference each one brings.
If you do it this way, you'll learn lots about a) driving, b) your rig and c) what it is you really want to do when it comes to off-roading (I'm assuming that this is what you want to do and not just build a mall-crawling jail-bait attractor

).
My $0.02.
:cheers: