V8 swap can be done. I've got a Ford 302 with C6 tranny and NP 205 transfer case in a 85 SWB Raider. Motor actually fits very easily in the engine compartment. Hardest thing to fit is big enough radiator. Transmission and transfer case will fit once a 2 inch body lift is done. I went with stronger torsion bars because of the added weight of the V8. Biggest obstacle I ran into was the gear ratio in the diffs. Stock 4.625 ratio is too high. I switched to a 3.7 ratio in the back so I could drive it as 2wd. I am planning on switching the front and back to somewhere in the 3.5 to 3.9 range so I can have 4wd again.