Teraflex tends to be a bit pricy... If you're on a budget:
http://roughcountry.com/jeep_xj_susp...lift_kits.html
Their 1.5 isn't that cost effective but if you have decent rear leafs the entry level 3 inch sure is...

 

So with the basic 3 inch lift on rough country is that all I need or will I need additional parts?

 

After you get it on you might want a Tcase drop depending on how she drives.

 

Do it right with a sye not t case drop

 

What's a sye and how much are we talking?

 

Slip yoke eliminator, and price varies.

 

And what does the sye do for the ride?

 

It keeps your driveshaft from wobbling by helping to keep the u joint angles at a minimum.

 

So when I put a two inch BB will I need to replace all 4 shocks? And what are some good fairly inexpensive shocks? I have been looking at some skyjacker hydro shocks. Does anybody know of shocks that are as good or better for a better price?

 

Yes you will need new shocks. I would check out a different brand of shocks, I've heard a lot of bad stuff about skyjacker.

 

Do you know of any quality brands

 

You could check out rough country or zone. You can get a discount on their products because you are a member on the forum. Those two brands aren't the nicest ones but you wanted a fairly cheap one.

 

Oh thanks! I never would've known that!

 

Fat bobs garage has BB's with shocks included. Does anybody know if these are good?

 

I'd say go for it. I've heard a lot of good things about fat bob's garage. How much is the kit?