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I can get a cheap 8.25 with factory limited slip from my friends '97 XJ with a NP231. I have a D35C in my 99 XJ with a NP242. Would my driveshaft work with the 8.25?
Sorry man, you are indeed wrong. The D35s were used up through '01. If you have ABS the 8.25 will not be compatible, it was never used with ABS and doesn't have the necessary components. The 8.25 would DEFINATELY be and upgrade though. As for the DS issues, isn't the 242 longer than the 231? If so you're definately looking at getting another DS or shortening your current one. The pinion on the 8.25 is longer than the 35. HTH
I think it can work, you may run into more vibes even with the BB you have. I've read many threads regarding that. If not take the measuring tape to the Junk yard and maybe find one.