Matt are you sure your xj will drive with the front drive shaft disconnected? I know some of the older FSJ quadra-trac transfer cases wouldnt with shaft off due to the differential in the case. Not sure about what you've got.
I love jeeps, About all my family owns are jeeps.
The xj's are great runners and seem to run forever. About the only prob we've had with the 4.0 is rear seal starts to leak around 200k.
My fav jeep is my 84 J10 shortbed with cut fenders 5in lift, 35in MTR's
360, T18,Np208, D44 ft/D60 rr out of a J20.
I built it to run 38-40in tires but need to regear and lock my 3.73 rearends first.
Bodys now bad, either got a lot of bodywork to do or thinking about swapping whole drivetrain into a CJ or TJ
Still looking for a 401AMC

Did I mention I love Jeeps