I have the same tires on my XJ with 3.5" lift plus 1" spacer on the front. I removed the front bumper cover with the fender flare because it rubbed. I still get an occaisional rub when backing up turning the wheels all the way.
Yep, and if you're nervous about putting the lift on, people on here will help out for cheap.
3" or less lift on a XJ is ~4-6 hours work. (Depending on how many beers are involved.)