My Trailmaster 4" lift has served me well over the last 13yrs, nothing has bent or broke on it. Some here have had bad luck with the lift as with the others, but a lot has to do with the speed some like to wheel at. I am very light on the throttle, and don't try to hammer my way up something, which may be why my lift hasn't had the problems as others have.

Another question that needs answering is how big of tire do you want to run. You can fit 32x11.50's on x15's with no lift, just some modification of the pinch seem at the lower corner of the firewall. With a 2" body lift and the same mod's you can run 33's. You can also run ball joint spacers with a 1" body lift and clear 33's. Both of these lifts will run you under $200(self install), the body lift is basic bolt on procedure, the ball joint lift requires a little more work and doing a basic driveway alignment to get it to an alignment shop.

A straight axle swap is probably nothing you shouldn't be concerned with at this time, just the install itself will eat up most of your budget.

Though since you are relatively new to the sport, you should really spend more time out on the trail, and develop an idea of what you really need/want. This is how you should spend your money first, protection for the truck, i.e., rock sliders and good front and rear bumpers, add recovery points front and rear, get a hi-lift jack, tow strap, shovel, and an onboard air set-up, and a winch if you want to wheel alone(though something you should really never do). You will need these things anyways, best to get them now.

If done right you could build yourself a mild yet capable trail rig with extra goodies for the budget you are currently working with.