Originally Posted by CJ the noisemaker
My vote would be the AW4 since it is a native to the I6 engines, and plentiful; However, you would need gears lower than 3.73, the wiring for the tranny, an adapter for the tranny to the TC or a slip yoke eliminator if you use the standard case, and the AW4 flexplate.
I've been told this before, so you'll get the same response.
3.54 gears will work fine as will 3.07's but it will be a bit of a dog with the 3.07's. Both gears were used in the XJ's 3.55's are what i've seen most often. You can also use the 231 or 242 in it's stock form as long as there is no lift associated with the truck. I am running an AW4 with a 208 and I had to use a spacer to make it work. You will also need new drive shafts either way along with crossmember work, as the AW4 is rather long.