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if the spline count is the same, the only things you need to change are the transfer case and the interior piece that indicates what gear the tc is in. More aftermarket support for the 231 if you decide to get a sye.
I have done the swap both ways, 242 to 231 and 231 to 242. If you really want to do it right you should get the shifter, linkages, shifter bezel and of course the T-case(with the right input spline count). The 4wd part time light in your dash will not work unless you re-wire a couple of things which is adressed in the link above.
I have a few NP242 shifter plates that I snagged from the junkyard. Not sure why I snagged them as I have a 231, but I did. They are for pre97 center consoles. Let me know if you need one.
If you pull the shifter bezels off both type shifters you will notice that the shifters are gated differently, the 242 shifter will work with the 231 as long asyou change the link at the T-case but it will not "feel" the same going in and out of part time with the 242 shifter.
Its easy to swap the whole shifter, takes maybe an hour. You will need to remove the center console and also make a few descrete cuts in the carpet to get to a couple of the screws.
hmmm thats odd since the TC selections are determined by the shift selector in the TC itself. Must have been operator error since Ive dont mine back and forth and had ZERO problems. Neutral is in the same spot of the Z on both set ups. If your idea was actually true then the Tera 2 LOW would have to have the "gate" modified and not the shift selector replaced.