There's a lot to be said for an LS swap.
I'd go that route if we didn't have to stay 4.0.
Can you imagine going from the 4.0L to an LS for KOH
I bet you and Richard would be grinning from ear to ear, after you cleaned your pants a couple times
i agree the power limits of the v8 swap are much greater than the 4.0 but i really don't see a point to running anything over 400hp in a Cherokee. I can hit the upper 300's if i go supercharged with the 4.0 stroked. The price is debatable, if you can find me a writeup or something that shows someone doing a full swap with a parts list that i can reference and doing it all without the use of a full scale machine shop at their disposal for less than $5k then i'll give it more thought. And once again your starting with a motor and drivetrain that are less than $1000 so im not betting too highly on the quality of the motor for that price.
now don't get me wrong here im not opposed to doing a v8 swap, ide love to do one in my wifes old wrangler (once i can track down the guy who bought it) one day. but for this particular application the 4.0 will be more than enough and it wont require so much of my time to complete it. so i'll have more time to enjoy it and less time building
You might try searching around here more then.
Several here have done the 5.3L swap...search FrankZ.
For $1000, the drivetrains I've seen have been nice, with less than 140k on the clock. Don't think just because it was cheap, its crap. There were a LOT of 5.3L's made. Most the guys I've known that have picked them up, bought the entire truck. Most of them parted out the truck they were in and actually ended up with a free 5.3L.
"but i really don't see a point to running anything over 400hp in a Cherokee"
You say that now...
My point is more to what Cal mentions below. Sure you'll get to 300+, but don't be surprised when parts start to fail, and your needing to rebuild your engine.
Pushing more air, reducing cylinder wall thickness, upping compression...these things don't make a motor any stronger.
Upping the HP in an XJ has been done MANY MANY more times than you think.
Most who end up trying to build their 4.0 end up wishing they had just done a V8.
There is a reason I won't be doing anything to the 4.0L when I want more power in the buggy. I'll be going straight to a 6.0L LQ9. 350-400 hp with little modification, and practically plug and play (though yes this is not a "cheap" route).
The thrust bearing goes first, followed by the cam bearings, lifters and rods.
They just aren't designed for the kind of compression and RPM that much power puts out. We're probably in the mid 3's with ours, and while its holding up ok, others with similar motors are rebuilding them every season or more. The 4.0 is basically a 1950's tractor motor that kept getting tweaked but never really redesigned.