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Re: 4.2l to 4.0 swap? Your advice needed :).
I would consider a 4.6L stroker, basically a 4.0L engine with your 4.2L crank. It'll bolt in place of your 4.2L engine. You could also rebuild your 4.2L and add a 4.0L HO head for better performance.
As for the rear discs, find a rear axle from a '95+ Explorer, it will have disc brakes, same wheel pattern, and can be found with many of the common jeep gear ratios. Can even be found with a limited slip diff, and relatively easy to install.
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