As long as it's in good running condition... A rear locker, or some lower transfer case gears would be my first purchase, in that order (and I say that as I have Marlin Crawler gears, and no rear locker, and wish I had got a locker first, and stuck with smaller tires). Taller tires should only come into play once you've decided you really need them.
Welcome to the board TN!
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Jerod
"Hiking is just walking where it's ok to pee.....
Sometimes old people hike on accident....."
89 4Runner "The James Caird" Yeah, I named it.
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