oh jesus.
That's worse than mine (I hope), and I just spent multiple days cutting out and repairing this kind of mess. Having done it once, I would probably not do it again, not on an XJ. Find yourself a good southern XJ with no rust and a dead drivetrain, pick it up for cheap, swap the drivetrain from your rust monster into the non-rusty carcass and junk what's left over.
Those frame rails are dangerously rusted, you will need to either fully sleeve them with rectangular tubing (I used 3x6 3/16" and it worked pretty well, only did 3 feet of the rear end of the right frame rail though) or simply junk the vehicle.
Also, you need to fix your exhaust - it looks like those pipes are way too small, and they're not supposed to be hose clamped to the tranny crossmember. Get a new OEM downpipe and a Dynomax catback kit with the 75 dollar mail in rebate they're doing, throw it on, and it should both perform and sound better.
n1ywb, long island is just as bad as the northeast if not worse, they have the added problem of salt air and people driving on the beaches :roflmao: I'd say to aim for no further north than the center of pennsylvania personally. I've even seen some scary rusted jeeps from virginia before, gradon parted a 96 out recently that was far worse than mine OR jeepdriver19's.