Don't be so mean to the kid Sparky. Anyway, heres a moto to live by if you drive a jeep, form follows function. If you want to take it off road and have fun with it, the loud exhaust isn't gonna get you there. The improvements to the supension, tires, drivetrain, etc will.
Ok, so it'll sound cool, but spending 400 on exhaust? Are you just retarded? BTW, just so you know, girls like Jeeps that are big, not sound like a ricer. The only exhaust I've heard that sounded good on a Jeep is my dads Rubicon with a Borla Catback on it. Loud isn't what you go for with exhaust, you go for tone. Unless your running a V8, you can't get both with a TJ.
Do the lift and tires. It's gonna cost more than 700 bucks, but it's worth it. Expect to pay anywhere from 500-900 for a lift (please for you and your passengers sake, don't buy rough country or any of that cheap crap) it's a worthwhile investment to do it right and save for a higher quality lift like BDS or RE. Anyway, we'll go in the middle and say 700 for the lift, then 700 for the tires and wheels. Look for used tires and used rims, and you can cut that price in half.
The difference between four low, and four high? Thats the staple of offroading right there. 4 high is used for when you need speed, more traction, or just for running mild trails that don't require any tough work to get through. 4 low makes your Jeep into a powerful little beast. You lose speed, but you gain a major increase in torque to the wheels. Torque to the wheels is multiplied by 2.72 when in 4 low. If you know anything about gears, read this, if you don't skip it. The stock Jeep either has 3.07s. 3.55's, 3.73's. or 4.10s, depending on you engine and transmission. In 4 high, first gear, your final ratio is anywhere from about 11:1 to 15:1. When you go to 4 low first gear, those numbers jump to about 31:1 to 45:1. IE, 45:1 means that for every 45 rotations of the engine, your wheel will turn once. This creates so much more power at the ground compared to 4 high. This allows you to climb up tall steep rocks, pull stuck jeeps easier, and it also slows you down so you can naviagte easier and safer. Gears are a staple of offroading, they can make or break you on the trail.
Also when going to a bigger tire, it might be important that you change the gears in teh differentials. Depending on how big, you can sometimes get away with not. Since I don't know exactly what your engine and drivetrain are, I can't advise you here.
Hope that helped a little.