Maybe reconsider and buy an 04 if you can swing it. It's just a much better package. You get the 4.6L engine which is more powerful and torquey than the 4.0L. And it has the locking center diff, with linkage, from the factory, and TC will work when you have the CDL engaged. My understanding (and I may be wrong) is that if you engage the CDL on the 99-01 trucks, the TC system shuts down. That means you lose cross-axle TC, whereas on the 04 it works with the CDL. Also, the TC/ABS/HDC system is retuned and works a little better on the 03-04.
I'm not sure if that's the type of thing you were looking for, but you asked for a primer and it's all good stuff to know. The 04 has a lot of nice little features added, and it's not a lot of extra money. Otherwise, McVick covered a lot of it. You MUST plan on doing something with the front driveshaft. Even if it's already done, depending on what they did, it might be time to do it again. There will be lots of other niggly things on a truck that old, the Rotoflex on the rear driveshaft might need replacing, etc. etc. etc.
Oh, I should add, check the floors. There is a black sill plate holding down the carpet at the door openings. There's a trim piece covering the screws, pull the trim, take out the screws, and look under the carpet. Just takes a minute, but it's something a mechanic won't see. These things leak A/C condensate all the time, and mine had leaking sunroofs and leaking windshield seal. I didn't discover this little surprise until I pulled that trim to put some stereo wires under there. Mine were quite rusty from having water trapped under the carpet.
Don't know how much you have to spend, but for example, here's a pretty nice setup. Wouldn't be hard to take it down a notch with smaller tires and lift if you're so inclined. Never mind all the comments.
http://www.discoweb.org/forums/showthread.php?t=67046
Or, this one here is a PERFECT platform. Nice Clean 04, ExPo White

, SD model so no sunroofs to leak, 16" wheels... And only $9000.
http://cgi.ebay.com/ebaymotors/2004...iewItem&pt=US_Cars_Trucks&hash=item2a0702c458