So I am getting ready to lift the XJ and do some wheeling this summer. I was wondering if the SYE kit was all it seems. I would like to to a 3-4 inch lift but I will be using the stock running gear as much as possible. I did a custon driveshaft myself with my old CJ-7 in the rear using an XJ front driveshaft and that worked great. I had to shorten it about 2 inches but even with my drop bars dropped out 6 inches I never had it knuckle bind. ( I did have over 18 inches of mechanical down travel but even on a really deep hole it only had to drop out 6-8) So I was thinking about doing the same with my XJ just so that I would never have to worry about the yoke comming out too far ect. I was also thinking about doing a drop bar set up with a SOA but that will be a bit more technical as this is unibody not a solid frame and thus subject to twisting motions more. For all who are wondering this is what drop bars look like.
SYE kits are pretty much a must on XJs if you want to do it right. You can use a frt. shaft for the rear no problem without shortening it. At 3" you can get away with TC drops and shims, but the SYE is the way to go The spring is already over the axle though. I may be misunderstanding your discription about that.
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99 sport. rust bucket, DD, 3 car seats 04 wj (w/3 car seats too) DD duty for the lady