I recently acquired a 1988  Samurai.  It is stock everything (that I know of) with a rebuilt engine (1.3L).

Adding a lift:
I'd like to add a 1.5-3" lift and add some all terrain tires, but I pretty much know nothing when it comes to this stuff.  I also heard anything over 2" and you have to adjust the brake lines and drop the pitman arm?? And do you have to replace the springs and shocks as well or is that standard when lifting a vehicle?  New shackles? I know that there are options like the SPOA vs suspension lift, but that's about as far as my extensive knowledge goes.  I'm looking for a(n) option(s) that will allow me to drive it daily, but won't break the bank.

Engine:
The engine is an original rebuilt 1.3L.  The cylinders were apparently bored out to increase HP.  The problem is that it still is lacking quite a bit.  It does fine on smaller roads but on the freeway I feel like I'm driving a Go cart... an awesome go cart.  Is there anything you can do to increase the HP?  Is a turbo an option or did I just lose all credibility by asking that question?

Like I said, I am totally new to this and appreciate any suggestions or advice. 

THANKS!!!

I would recommend u to do a 1.6 engine swap thats the 1.6 tracker or sidekick engine. add dual carbs header exhaust. huge upgrade.  my buddy has this done and man does it rip. he is runnning 35 inch tires as well.  I currently have the 1.3 and i am looking to do this 1.6 swap setup because currently i have the 1.3 with calmini header and exhaust upgraded 5.13 gears and my sammy is lifted 10 inches and pulling 35 inch tires and my sammy is a 65 mph hway beast its like a monster truck go cart lol.  But if u are looking to stay stock ride height and stay with no larger than a 31 inch tire you could stay with the 1.3 samurai engine and add dual carburators,do a header and exhaust you will have a lot of HP gain by these some what affordable upgrades. hope this helps

You just missed the Supercharger made for the 1.3 that was for sale in the Classified section.  For a small lift the OME 2" lift springs are considered a good choice.  Combined with some good 30" tires and a 4:1 transfer case (or the 5.12 gears mentioned by msmzuki) and you should be set for light wheeling and adventure running!

Or consider a shackle reversal kit.  I know Calmini makes one, it yields 2" of lift.  They seem to be pretty good, but I don't have experience with it...hope someone can chime in on it.  woof359 just did a writeup on it here.
http://www.zukiworld.com/forum/technical-discussion-performance-modify/calmini-reverse-shackles/
I wouldn't know about turbo'ing a 1.3L Samurai, but wildgoody (1.6L 8v) and bentparts (1.6L 16v) have a pretty darn good turbo setup on their rigs, and muskegtracker had a turbo on his 91 for awhile.  They could definitely tell you more of the do's and don't's of a turbocharger.
There's a lot of happy 1.3L owners on here, but most common for MORE POWER is to swap in a 1.6L or a VW turbodiesel for huge economy and that COOL factor of blowing that black smoke on people with their windows down when they tailgate you.