Joel, not to bag on your rig
by any means, but it's not an optimal platform for anything but light wheeling in it's IFS state. The steering is incredibly flimsy, so much so that there is a lifetime recall on some original components. The lower control arm frame mounts are notorious for spreading unless you tie them together. Torsion bars are only going to get you so much lift (if they aren't rusted in place), and cranking the t-bars for lift will come at the expense of comfort. The rear will require attention, as yours probably has serious saggy butt, and correcting & lifting at the same time will require modifications to either the panhard bar or it's mount. All that, and you'll get a mildy lifted rig suited for light duty. The chain driven t-case doesn't give you a lot of options for easily upgrading either.
So, to build a reliable, capable rockcrawler out of it, you are looking at spending a
ton of time and money on fabrication for a SAS and drivetrain components/improvements- which is fine if that's what you want to do.
I would recommend that you that you should regularly wheel it (somewhat gently) in environments you prefer to frequent before you spend a dime. You may find that the break it & fix it cycles are too frequent and decide to get a more solid platform, or you may decide to enjoy it for what it is and go overlanding in comfort with OEM reliability as a benefit... unless you've got the 3.0, which is another story altogether.
As far as lockers go, I wouldn't lock the front. A rear locker and good technique will take you almost anywhere you could want to go. An open front is much better for your CV's lifespan. One nice thing is that a freewheeling hub swap is very easy for your truck- important for overlanding reliability.
Sorry so long winded, but I'm a little familiar with these trucks. Good luck with whatever course you choose!