I will try to address as many posts as possible, but first, thank you all for your input and ideas. It really is helpful. Also, I should have mentioned that this is not a project that will be happening right away, so I have time to debate things and keep my eyes open for deals.
I love the suburban idea, but its way to big for what I and the neighbors have as trails. They are 4 wheeler paths that were widened to fit side by sides as a few people got them. It would take a lot of work to make the suburban (or power wagon) friendly. Actually, my first post here was asking for square body purchasing advice, but decided to fix up the Duramax I already have.
Side note: the Silverado has new rockers and cab corners, new tailgate, I am very slowly building a new rear bumper. I replaced all 4 corners as far as brakes go. That is all due to Mi and Oh rust. I also put some new rims and tires on it and am now debating some suspension upgrades, and trying to plan a roof rack design that I will attempt to fab up. There are alot of other problems that need addressed as well (power windows, seat controls, windshield leak, (I think. The drivers floor boards get very wet when it rains)).
The "work with what you already own" idea seems to be working out in that context, so it certianly sticks in my mind here as well. We do know the Xterra well, although there isn't a whole lot to know, it has been basically trouble free (knock on wood). In reality, it probably is worth more to us than we can sell it for. The ifs doesn't really concern me in the short run, but on the (slim) chance we get into offroading a lot more, it might be a limiting factor. Although, a SAS might be a fun undertaking someday as my skills improve. I will absolutley look more into the Lokka. I had never even heard of that. Were you referring to that up front and leaving the rear end open, or throwing a locker out back, too? And there's still the uneasy feeling of putting a relatively nice vehicle into a tree.
The xj has a lot of appeal and there are certainly some cheap one available. Most cheap ones are pretty rusted though. The ones without the rust aren't cheap. I know cheap is a relative term. Rusted ones with 200k miles can be had for under $1k. Nice ones without the rust with around 150k can be upward of 4k. Mild built ones that are a little(or a lot) beat up look to be around $2500 and up. In that case, I very well might be just inheriting someone else's problems. I don't mind some rust if I am going to beat out up anyway, but at what point does it impact the unibody strength?
Wranglers are a cool option, but the last time I checked them out, people wanted an arm and a leg for them. Also, I can't help wonder why I would get one, when we already have CJ sitting here (just thinking out loud, by no means criticizing your opinion). Is there that big of a difference between them to justify having both. I know, we can always justify more vehicles!!
Samurai's are cool, but definitly harder to find and more expensive. The small size would work great in the woods, but might force the rear seat to go in and out based on family ride vs. doing work around the property.
Downfall of all of these is no bed, but I can probably deal with that. The Xterra still has storage room behind the rear seats. I did see some pics of xjs turned into trucks. A few of them were pretty amazing.
The more I think about it, the more I don't think the CJ will ever be a woods vehicle. It might have the look, but in reality it will be more of a "mall crawler". I hate to do that to a vehicle, but it really is the most likely course of action. Plus my wife made a comment once about it being my boys' first ride, 12 years from now. She has been wanting me to start on it for a while, but other things always seem to pop up in its place.
I am sure I am missing some ideas that were addressed, but I really do appreciate all the input. I might jump over to the Nissan forum and see what those guys are doing to their Xterras.
I will research and debate forever, and even then, I will pull the trigger slower than anyone you have ever known. It's a curse...dated my wife for 14 years before getting married...just had to make sure I guess!
Thanks again.