Rebuild or new crank kit?

Hello, all. I have a '97 XJ with a '95 4.0 engine that's racked about 160k miles. It has taken a few beatings, but for the most part it has been cared for. I owned the Jeep the engine came from for 10 years, and when I bought the '97 and converted it to 4x4 I kept the '95 engine since the '97's had a major lack of oil pressure.

Now, a year later, the '95 engine is experiencing the same downward trend in the oil pressure department. It sounds like a diesel at warm idle, and with brakes applied in gear at idle the gauge reads zero and the evil red check gauges light illuminates.

Now- the question is, should I assume this engine is good enough to live a long healthy life with just an "underhaul" consisting of a reground crank, new rod/main bearings and a high volume oil pump, or should I yank the motor and go all out with new pistons/rings/cam/timing set? Keep in mind I'm on a budget- Obama doesn't pay me that well...

This just in- Compression:
#1-150
#2-150
#3-150
#4-150
#5-155
#6-150



I'd say that looks pretty good! I'll be checking out a mechanical OP gauge later on... perhaps the stocker is lying...

I wouldn't doubt the stocker is lying. If you take the bottom engine apart it would be worth your while to do a full rebuild on it.