I have done a ton of offroading in my foz, it's back to basically stock now.
If you're wanting light offroad and better snow clearance, I'd recommend the 1" spacers available from Subtle. If you want more articulation, remove your rear sway bar (you won't notice much on the road). If you want even more articulation, remove your front sway bar. For tires, if you deal with a lot of snow, get yourself some Firestone Winterforce tires. I can tell you right now they do very very well on snow and very well offroad. They are my winter tire. If you want to be doing some offroading during the other three seasons, look at the Yokohama Geolander AT-S. They are not as aggressive as the General Grabber AT2 and therefore does not sacrifice as much on road handling. I ran the AT2s, they are not all that spectacular on pavement and do suck on wet pavement. The Yoko is a better balance. Tire size - 215/65/16, with our without lift they'll fit no trouble.
And please please please please get yourself a set of skid plates! Subtle carries them, so you might save on shipping going through him. I endorse Primitive skid plates, they were what I have and believe me they hold up. Go with 3/16s, it's worth it for the added peace of mind and doesn't add much weight.
Also consider removing your OEM mudflaps. They crunch very very easily on rocks. Also remove the front plastic things in front of the front wheels. Catching any of these can rip out your inner wheel well.
I hope I've answered all your questions with some different perspective and answers than some other members. My biggest point is do what you need to be safe and comfortable. Overdue it, and you'll be very displeased with what you'll have to sacrifice with on road handling. To help, my setup was:
2" spacers (from Australia)
215/65/16 General Grabber AT2 (spring/summer/fall)
215/65/16 Studded Firestone Winterforce (winter)
Removed front swaybar
Removed rear swaybar
3/16" front and rear skid plates -
SKIDPLATES
Rally Armor basic mudflaps -
Rally Armor Rally Products, Rally Mud Flaps, Skid Plates and more.
With this setup, the car was no longer any fun to drive on pavement. I set it up his way because the majority of my pavement miles I do on my motorcycle. So, hope this long blah blah of mine helped! I don't wheel my Foz anymore, but obviously still love talking about it. *grin
EDIT: people are talking about the 1" not being worth it. As a heads up, you will find if you learn to drive well and get yourself a good set of skid plates, you'll be impressed what you can do even at stock height. I would advocate that the removal of your sway bars will do more for your offroad ability than even a 2" lift. Just personal experience.