I could be wrong, but I thought the birth of the Liberty was the death of the 242. Didn't they only come with the Diamler 3.7 liter V-6? I didn't do extensive research but that's what my memory is telling me.
Depends on which "242" you are talking about, the 4.0l, 242ci engine was disco'd after 2006 in the Wrangler and had been replaced with the both the 3.7l OHC truck V-6 and the 3.8l OHV minivan V-6 motors in Jeep applications. Looks like the OP was talking about the NV/NP242 full time 4wd transfercase commonly know as the Selec-Trac in Jeep vehicles and had beefed up versions that were used in the Durango and Humvee.
clocking?
clocking refers to how it is rotated when it is installed. for example, the cherokee and wrangler transfer cases have identical mounting hole patterns, but the hole positions are clocked a little different (rotated) because of clearance and driveshaft issues
Off-topic...
That is one hell of a booger weld on that exhaust tube