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Engine woes

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I recently picked up an 88 MJ 4.0, 5spd, SWB for a whooping 300 bones. Now I got it and the dip stick is covered with $#!&, it leaks like a sieve (what 4.0 doesnt), and has a lack of power. Now my buddy just rolled his 98 XJ and offered me the engine and wiring harnesses and $#!& for 300-350, should I go that method and do a 97+ conversion or just throw a newer renix engine in? Is there a write up for the 97+ conversion? How difficult is it to do?

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