Alright... I'd like to see what you guys would do if you had my truck. First off my personal budget is at around 1500 bucks to put toward the truck. My dad said he'd buy and pay for the install of tires or he'd buy and pay for the install of a 3" body lift. He technically still owns the truck and doesnt want me to have more than 3" of lift on it. Im open to any suggestions! ex lowering, lol... just not my style. I like to offroad some (nothing that a level kit wouldn't get you over) like some mud, hills, beach, etc... so let me know what you think. Thanks in advance! Here is my truck (my gallery has more):

I currently have a 3" level kit, Flowmaster 50 Series SIDO at 45 degree angle and AIRAID CAI:

 

Get some off road tires and rims, and dump the step bars. That should leave you with some extra cash to take your Father out and say thanks!

 

Body lifts are great, but they are expensive to install on the 04-08 trucks. They are around $300 and most shops charge around $1000 to install one. This is what I'd suggest. I'd go with a standard 6 inch Pro COmp lift. This will eliminate your leveling kit, so your truck will only be about 3 inches taller than it is now with the leveling kit. I'd then go with a set of 35's on some 18 or 20 inch wheels.