need some Info: 86 XJ

My buddy Just picked up an 86 Laredo XJ 2.8L carb'd engine, I finally convinced him he needed a Jeep Cherokee so he talked to his aunt who had one in her driveway she didnt use, he got It for practically nothing so we've got some plans for It but I'd like some Information before we do anything. I'm a 99 Cherokee guy so I dont know much about this XJ and I'd like to learn, Its way different then mine. I told him to do alot of searching on here because he has plans for an engine swap. This 2.8L has 215,000k on It :wierd: , Im leaving the engine swap up for him, I'll help with wrenching but planning is for him, engine swaps are over my skill level. He has some experience from engine swaps with Honda Imports. I basically want to know anything positive you have to tip me in on. I know older XJ's dont usually need SYE's with around 3-5", is this true? Its got the wacky commandtrac, It has the side transfer case shifter (It wont shift, I think the linkage is broke, is this a hard fix?) and the 2wd to 4wd left to right shifter...Any Info as far as suspension and such is appreciated...I think Its got the d35 (circular pattern)..

He doesn't have Command-Trac, he has the early Selec-Trac. 4WD high range is not locked, it's only a full-time system in high range. But the transfer case is very strong, much stronger than needed for the wimpy 2.8L engine.

Rear axle is a non c-clip Dana 35.

The engine room isn't long enough to drop in a 4.0L Jeep engine. It can be done ... but it requires some sheet metal modifications. The best engine swap for him will be a GM 3.4L V-6 out of a rear wheel drive vehicle like a Camaro. It's the same basic 60-degree block as the 2.8L so it does bolt right in.

yea he was talking about the 3.4l swap....

not calling you wrong but the Jeep says command trac on the 2wd to 4wd shifter...Its a lever that goes left and right and Its in place of where my 99's center ash tray is....