I really like the factory adj shocks, but when they wear out, I'll probably go with KYBs or OldManEmu's, for the cost factor.
As far as the rear end, I'll echo what others say - very doable. I'm doing it myself as a matter of fact. You'll need the third member, the left axle, and the ancillary stuff (compressor, ecu, switch). On my truck, the wiring is already there. Maybe you'll be lucky too?
As for the diesel... hmmmm... I think it would be a lot of work. The 2.8 was available mostly in front of a right hand drive setup (definitely, if getting a JDM motor), so there will be more things to move just to make it work. Then there is the fuel system - you'll have to do the fuel lines to and from. Not sure on differences in the tank. I know they're both 92L, but beyond that, not sure. Maybe venting differences? Okay, moving forward - you'll need the proper glow circuitry if you want good starts. Fuel filter assembly is a for sure, and wiring may be interesting as well... Somewhere around 96 or so, they went to an electronic management system with the fuel injection, so you might want to get an earlier 4M40...? Lots of other little stuff, which would make me lean toward a front half-cut, as opposed to an engine by itself.
Then there's the trans. Different ratios AFAIK, to keep the revs down in the diesel's power band. Oh, speaking of revs, different instrument cluster. My trans has the same model designation as a 3.5 gasser of the same year, so the basic structure should be the same...?
What ratio diffs do you have? Mine has 490s, and I wouldn't want any higher (numerically lower) than that, in order to keep the rpms in the right place. The bigger running gear is available with 490s stateside, but it may be another thing to keep in mind for the parts run, if you don't have them already.
All in all, I would definitely want a front cut if I was to attempt this swap. Complete with hood too, if possible, so you wouldn't need to duct your existing hood for the intercooler...
I can provide pics of the engine compartment, if it will help, but keep in mind that mine is RHD, so things are in the factory position.
Cheers
Phil