Wow! Great response, thank you!
Any more details on that swap? I did a little research on a 4.0 swap awhile ago and didn't find anything. I really like that engine in my TJ, and like you, would love to do an LS, but the cost is prohibitive. What transfer case did you use? And how was the wiring? Did you have to fab a new transmission crossmember?
That is a really interesting option, as it would be around $2k for the EFI and electronic distributor, so if i can get a more dependable engine and a trans with another speed for similar price (honestly I would probably do it for double), then I'm in!
Thanks! I felt the same way (I've had a TJ before and loved the engine). Unfortunately I didn't do a write up because I was interested in completing the swap as soon as I could
Given that the 258 was supposed to put out around 110hp when new (almost 40 years ago) swapping to the 4.0 with 180+hp is a totally different setup. I'm still running the factory gears in the axles, but with the new transmission (and overdrive) I have plenty of room for new gears in the axles.
My Wagoneer started with a 258 / 727 / NP208 and a spare fuel tank where the factory spare was (more on this in a bit). As I said earlier, engine mounts for the 258 & 4.0 are the same, coming from the 360 you'll have to weld in new mounts to your frame. This will probably be the hardest part if you don't have access to a welder. After that, I dropped in the 4.0 already bolted up to the aw4. I did have to put in a 3/4" clocking ring between the aw4 and the np208 (used only as a spacer) because the output shaft of the aw4 is longer than the 727. I used the factory transmission crossmember (with a transmission mount for the aw4), but I did have to put a few new holes in the frame to mount it. I'm not sure how the radiator is setup on the 360 but if you can plumb it up to the 4.0 (are the inlet and outlets in the same place?) it will work. Along those lines, I already had an electric fan on mine, so I didn't have to worry about that.
Wiring was surprisingly easy, the hardest part was identifying everything in the new donor harness. There are only about 5 wires that I had to splice into the wagoneer bulkhead harness (power, ground, start, run, and something else that I've forgotten). If you do the swap, contact me at this point and I can help more.
The little complications were (everything else basically bolted in):
(1) Shifter linkage had to be lengthened between the bottom of the steering column and the transmission.
(2) Transfercase linkage was the same, with the same fix.
(3) The factory brake booster has to go. It's too large and hits the intake manifold of the 4.0. I put in a hydroboost from BJ's wish I had done it sooner. It's a massive upgrade, so consider it as a double upgrade. I also mounted the hydroboost upside down for extra clearance.
(4) With the added length of the aw4 and the spacer ring for the np208, the transfercase bumps into the factory fuel tank. I just got rid of the factory tank and now use the 25 gallon aux tank where the factory spare is. I've heard of other people using 40 gallon Suburban tanks...
(5) I had to switch to a new electric fuel pump, mounted on the frame rails near the transfercase.
(6) I sent out the driveshafts to be lengthened / shortened.
(7) I replaced the factory fuel lines with nylon (actually I did this earlier, but you'll probably need to relocate things).
(8) I also replaced the transmission cooler lines because the factory ones didn't line up.
(9) Drill new holes for the transmission crossmember.
(10) Reroute exhaust.
All told, it took me about five days to remove the old drivetrain and replace it. I used an extra set of hands for helping with lining up the engine on the mounts, but otherwise it was all me. One of the things that I thought about doing was stroking the 4.0 for extra power, but I didn't have the time - maybe that will happen in the future. Also note that because of the length of the aw4 it does create some issues for the fuel tank, linkage, etc. As I said earlier, I wanted to swap in a manual which would have prevented these issues. Of you could keep your transmission if you want (I think Hesco makes a bolt on adapter for the CPS). Final important note: where I live I do not have to smog my vehicle, so I did not deal with any of that.