I REALLY like the NV242 tcase option. Once there, you have aftermarket tcase support, including super lows and doublers. You get all the benies of active-trac, 2h, 4h, 4hlocked, 4lolocked in the 242, and it's also a touch stronger than a nv231.

Ditto the W motor, 200ish hp and loads of torque. Once you are into GM ecus there is a world of support for write on the fly fuel and spark and shift tables if you go 4l60e tranny, the electronic 700r4. The only more powerful 4.3 is the ty/sy 4.3T. Later model 700r4's are now tough and versatile. You can also tune the tranny shifting. I suggest a cable shifter and relocate.

You may need to fiddle up a speedo drive.

This is an elegant swap, almost the hp of a 2.6T, more torque down low, buy parts anywhere, and cheap. Landraider has a very good one for sale. You ought to think about buying instead of building, Betcha it's long term cheaper...