A few little updates, and than you to everyone for positive comments!
Last week I got to hit a trail with one of the members - billygoats, he has a very nicely built 2.5 montero. That was lots of fun and showed me that the car is very capable even stock. I found a few issues that were limiting me like my current tires, so that is a number one thing for me to get. I was surprised how well the lsd works with a help of a handbrake, makes a car climb very vell.
I finally ordered some 265 75 16 cooper st maxx tires, discount tire had a sale on them on ebay, so was able to save 200 on 4 of them. I decided to keep the stock wheels for now. Will experiment with some wheel spacers, but so far my test did not make me happy because it gave me a vibration at 70mph. I will try installing spacers again once new tires are installed, and I will try to clean all the rust off brake rotor surface and rim surface so that the spacer sits more true. Another update is I ordered ome front struts and springs and rear springs, so should have that installed soon hopefully, and then it will be time to hit some trails.