It will be easier to change the cluster, but you will have to change the oil pressure sender and possible the coolant temperature sender as well (that one I'd have to check.) The reason for the sensor swaps is simple - the ID10T lights require a simple ON/OFF signal, so they use switches. The gages require a variable signal, so the sensor is a variable resistance.
I'm not sure about the temperature sensors for OBD-II models - but you can check with your local parts house to see if there are two different numbers, one for the light and another for the gage. If they are the same, then the gage will be driven by the ECM signal, which is always variable.
The oil pressure sensor is near the distributor, and is an easy swap. Use Teflon PASTE rather than tape, as tape has a funny way of getting loose and blocking things if you don't put it on just right. The temperature sensor you are mainly concerned with is, I seem to recall, mounted in the thermostat housing - but check that, since all I've got are PRE-OBD XJ's.
The wiring is otherwise the same - just the signals are different. I'm sure you'll need to look for a 97-01 gage cluster, so you might have a little more trouble than those of us with older XJ's.
Still, getting an OEMR cluster with gages and changing the sensors will save you having to run wiring, mount gages, and figure out where to put the senders - since the factory has already figure out the best places to do just that.
Start combing the junkyards...
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