Check the floors, and inside of the rear wheels wells for rust. Those are usually the first and worst places they get it.
As far as the 4wd swap, yes it is as easy as it looks. Best part is you can usually grab an entire XJ, do the 4wd swap, and sell off what you don't need to make some money back. The only thing you can't grab from an XJ is the rear driveshaft, you'll either need to find a factory 4wd MJ one, or have yours cut down.
Looking forward to some pics, even if you don't buy it. Welcome to the club!