You can't use 4x4 EVERY with that much difference in the ratios UNLESS it is strictly a mud bog/slush truck. Depending on what "worn out" means, it could be completely trashed.
If 4LOW is out you should assume 4Hi is out also since everything functions the same in both gears only the gear is engage with the lock plate in 4LOW. You would have to pull it apart to find out what the problem is, OR just replace the T-case.
You can put up to 31's on it without a problem. I don't have a specific tire to recommend but for they type of driving you asking about I would say any all terrains. As for wheels and tires = stock or stock size 15x8"
Thanks Cap.... Let's say it is completely trashed. What all entails a overhaul?