I wouldn't bother with anything smaller than a Dana 44 or 60 front axle, depending if you are wanting to stay stockish in width will change the $$ amount of the axles...
If you want the "easiest" and simplest setup going to the Explorer 5L swap would be it for engine then the M5OD-R2 from a 4.2L F150 from '97-03 I think and the BW 4406 transfer case is the narrowest of stockers, can't be twin sticked though...
I have an '00 Explorer that I did a manual T case swap to a 4406, headers and mild cam that I plan on putting a Dana 54 TTB front axle and a 10.25" out back... maybe next year I'll get to working on it, got the engine freshened up this year so getting closer...
Thanks for the recommendation I'll check out the d44 and d60 options. I am aware or the FOA long travel 4.5" suspension lift but i still don't know if that includes axles with it. I would hope so considering it's 4 grand before taxes and shipping. I'm thinking about doing the exterior of the truck (front fenders, hood, grill, Headlights, replace cracked windshield) and interior (new dash and seats, fix steering wheel buttons and power mirrors/locks) first, and then try to make up my mind on what suspension lift, gearing, and wheel size will be the best for my power train choice which will come last.
As for the swap, I know I'm bouncing around a bit here, and I still have not made my mind up (so 5.0 and 4bt still on the table), but I recently discovered the 1.9L TDI option with the adapter plate out there off the shelf. If I go the TDI route, i'm wondering if i should just keep the M5ODR1 that i already have, or if i should go the M5ODR2 route. Lots of decisions. Just need some clarity moving forward so I know without a doubt what needs to be purchased so im not buying a trans or t-case and then not needing it later down the road.