Now I know what you were talking about. Ok ! first you have a Jeep not a Rice Car. Sure a bigger engine is nice to have but it also cost $ to change everything over. There is nothing wrong with having a 4 banger. You have a really nice Jeep and I would start with a 4" lift or more depending the size tire you want. 33's would look good unless you plan on coming out here to go Rock Crawling then thats a whole other story. If you go through members pic's of their Jeeps you can get an ideal where to start. And if you have any questions of anything - Ask because everyone on here will help. Now add pic's of your Jeep and finish your new member forum.
He really wasn't asking about a lift or tires.
I don't think you would gain as much performance for the $. Just drop a 6 in it if you want more power.
And check out 4BangerJP.com - Index for other squirrel addicts like myself.
I would not go much more than .20.You will end up blowing the motor from the thin piston walls.There is not much that the 2.5l will not do.Put your money towards small adds like CIA or a Snorkel.Small thing like that are affordable and will make a difference in the power that the 2.5l will put out.
If you go to the site Bounty mentions, you will see that YJMechanic did a .060 overbore over a year ago, and has had no issues with his engine.
Now, many of us run the 4-banger on lifted jeeps without issues (i have 33's, and IIRC, Bounty runs 35's, and if you gear properly, you can go even bigger) and without getting into boring the engine (just minor mods, like bored TB's, eFans, catbacks, etc.) and some regearing.
Now, a 2.5L will never have the torque of a 4.0L, but dont put the mighty 4-banger down; it is a fine engine, no matter what the 4.0L owners say!