Hmm, Thanks for the feedback. It's a good thing I didn't buy the tires yet since I had my doubts. I did see a nice pair of 27x7.5s but there were only two and they were non radials. I'll have to keep digging around or maybe just go for a 4" lift and 28s.
I plan on addressing the power issues by doing the spfi swap but did not realize the flywheel and clutch would be an issue. Will swapping an rx pressure plate be enough? The clutch is pretty close to dead anyway so that was already in the works.
By the way, "Major Surgery" is okay by me since this thing is very rusty and not worthy of any kind of restoration. I think the real problem lies in the width of the tires and the offset of the wheels as far as fitment goes. This is just my offroad beater afterall.
Thanks again for all of the feedback