As the vehicle's suspension works through it's range... the distances between the t-case outputs and the pinions change (relative to their length when the Jeep is sitting flat & level)
Out back, the XJ came with a 1-piece driveshaft with a "slip-yoke" at the transfer case... it slips freely along the splined output shaft. Up front, there is a "fixed yoke" and the length difference is facilitated by a 2-piece driveshaft (that happens to have a double-cardan joint at the t-case end)
The traditional SYE (slip-yoke eliminator or 'short shaft' kit) replaces the tail end of the transfer case with a much shorter output shaft and a 'fixed yoke' -or a flange. To this, a 2-pc shaft with DC joint is attached. In the end, a SYE'd T-case looks similar comparing the front & rear outputs/shafts.
The SYE kit allows use of a longer driveshaft that lessens the difference in angles. U-joints have a range in which they operate without binding... operation at angles exceeding this leads to premature wear and possible failure The SYE & new shaft should extend that range (by the DC joint's two UJs 'sharing' the angle) Just like your fingers have three knuckles... put a loop of tape over the middle knuckle and you can see where I am going with this.
Some "HD" SYE kits also have a 32 spline output shaft, which is a strength upgrade vs a shortened OEM shaft. The home-fix ones are commonly called "hack & taps" because you hack off the old shaft, & tap it for a bolt that holds the new flange to it. Either one will require a double-cardan style driveshaft.
All the shims do is adjust the attitude of the pinion yoke relative to the output. T-case drops do that as well, from the opposite direction (but the T-case 'drop' also raises the front DS angle to a corresponding amount of degrees) They
MAY OR MAY NOT eliminate vibrations... done wrong, they may INDUCE them... :dunno: YMMV.
I run NAPA Extra Strength greasable UJs with Mobil-1 synthetic grease and I haven't had an issue with these in five years of messing with XJs. If I had a local source for genuine Spicer joints, I'd consider switching over, but I don't and no need to fix something I haven't started breaking yet.
What axles you decide to build has no bearing on any of the above... other than that the angles have to be set/adjusted relative to the type of driveshaft used. A Dana Spicer Model 44 or 60 axle, being physically larger, will require shorter driveshafts than the common / OEM 30 front or 35 rear. With Dana Spicer axles, generally speaking, the larger the model number, the beefier the axle... (beefier in terms of housing strength, axle shaft diameter & spline count, ring & pinion gear/bearing size) Older model 60s and model 44s had smaller axleshafts/spline counts compared to the mid-1970's & newer. The older units aren't a bargain even if given to ya...
Tom Wood's site has good info and better parts...
www.4xshaft.com
Anything else?