I just got a 89 yj 4.0 5 sp, that is about due for a new engine. I would like to install a small block that is FI and will pass smog here in CA. Does anyone know anything about what would work. And  what auto trans would mate up to the transfer case. I am planning a spring over lift and 35's. Any feed back would be great thanks.  

California is really strict with engine swaps. Their rules make it really hard to find suitable candidates. The replacement engine has to be the same year or newer.  The smog and electronic equipment invariably needs to be from the donor vehicle or purchased from the dealer.  This pretty much rules out the many AMC V8's which have matching bell housing patterns.  The cost of fitting in and making a swap smog legal is daunting.  You might consider a 318 from a later model Grand Cherokee which is an updated Chrysler small block engine 273/318/340 V8 family but you need to get it with trans and transfer case, be sure to get the wiring harness and computer as well. Something else you might consider and it has a certain sense of accomplishment is to get a later year 4.0Liter from a leter year Grand Cherokee. During a complete rebuild you can bore out the block using parts fro a 4.2 liter engine, Agressive head work a mild cam upgrade, Head work with larger valves porting and polishing of the intake manifold and after market ARB Header, you could have an engine capable of out perfroming many small block V8's and with the advantage of costing you less.

Rick  

Thanks for the info Rick. It's hard to break old ways of thinking. I may not be giving the old 6 the credit due.

Thanks again Dale