Bastard pack, 2" lift shackle, T-Bird Springs. Cost you all of $50 bucks at the pick and pull plus $100 for the RE 5" center to center shackles. You may not need a T Case drop but if you do you can make one out of flat bar stock from home depot. You will need shocks, cheapest are monroe TJ shocks which are good for about 2" of lift on an XJ, droop will be restricted. There are plenty of monroe shock threads here you can search for that will give longer travel shocks. You will want to drop the sway bar mounts or extend the vertical links. F250 rear sway bar vertical links fit perfectly. Add hitch pins and wingnuts an you get a dirt cheap set of quick disconnects. Redrill the mounts for the front brake hardline to softline clips and lower them a couple inches (the hard lines will have to be straightened a little). Use square tube to space the rear bumpstops down and a hockey puck up front (search on it) to bumpstop the front.
You will need an adjustable track bar. Adjustable lower control arms are a big help and are really needed at 3.5" or more.
This basic combo has served me well for 8 years. I added an inch of lift block, a shackle box relocation bracket and a couple stock XJ spring isolator pads on the coils to bring it up to 4.5"/5" about 5 years ago.
If you scrounge and turn a wrench you can do some really neat stuff for very little money.
John