I want to do it for more off-road purposes. It's mostly a winter truck. I have another vehicle I drive in the summer.
I don't want to go much bigger with like the lift or tires. Maybe just a small suspension lift and slightly bigger tires.
I rather get more power out of it. Because like small hills on street that come up i have to drop it to second or sometimes frist.
It will probably end up being a project, becuase i'll probably have to rebuild or get a better tranny.
As what kewlynx stated, a gear change is your best bang for the buck. With 32's and 4.10's you have suffered a 15% power loss(assuming manual tranny), regearing to 4.88's will result in a 45 power gain over 6the stock set-up i.e, 4.10's andd 28's. You can pick up oem 4.88 3rd members for under $250 ea. However if you are considering running 33-35's in the future you should consider getting 5.29's now. The 5.29's will be a bit high w/32's and youwill run in the upper rpms on the highway, but you will have a better crawl ration on the trail. You could regear w/5.29s and a rear ARB for under $2k. An enginne swap alone will run you more than twice that amount and you still wont have the right gears for the tore size you are running.
If after you have regeared and still want more power you can rebuild the 22re, and get about 145 useable hp out of it by enlarging the cyl.s, head work(karger valves), a different cam, exhaust work, etc. This rebuild should still be about $2k(if you do the tear down/rebuild) which when added to the cost of the regear/locker would still be cheaper than swaping in a 4.3 Vortec, or a 2.7 Taco 4cyl.