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If and when I get around to a 350 swap I think the drivetrain is ready for it. It would be a stock 350, nothing axle breaking. <img src="/forums/images/graemlins/kewl.gif" alt="" />
If you have a Motorcraft 2100 2V carb, which was stock on most of the 304's, it is a very good carb. Aside from possibly needing a rebuild, there's really no reason to change it.

A (GM, or other) HEI distributor & larger wires will allow more spark plug gap (.045) and more advanced timing. This is a popular upgrade.

Here's a good writeup on a 350 swap...

http://www.manoian.net/jeep/jeep_chevy_350_conversion.html

'79 CJ5,401,t-18/d20,dana30/amc20(Mosers),GM HEI, Edelbrock Performer intake,Holley 600, ps/pb, 'glass tub/1pc. tilt nose, 33x12.50x15 BFG T/A's. Lots more to be done...