Check Engine Light

I had autozone run a scan when my check engine light came on. They said it was the TPS. I got the part but had to wait before I could exchange it (screws were warn out) anyways I had it unplugged and I put it back on and now it seems to be running fine and check engine light went off. Whats up with that? Could a loose connection cause it to send an error code like that? I even unhooked the battery to try and clear the computer but it is still off and Jeep seems to be running just fine now. Any suggestions?

Yes, it could have been the connector plug that was causing the problem.
Or the TPS could have been marginal and unplugging it gave a better signal path.
I'd keep the new one, and drive the XJ for awhile; see if the code returns......

Actually, since the TPS can fail randomly, and you do have another one in your possession, i'd go ahead and throw the new one on. It's not uncommon to see them bad out of the box. I'd hate for you to have to go to replace it one day, and have this one that you just got be a dud....and it's too late to return it.

I'd basically swap them. Put the new one on, if it works fine...great! Hang on to the old one and keep it as a spare. If it doesn't work, you can still return it.