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One advantage ... I think the only ... for the XJ is they are extremely light for an SUV. 4x4 XJs only weigh around 3200 pounds.
OM617 diesel has been done once or twice I think, they saw some serious mileage improvements out of them!
If you want better mileage without spending the money for lockout hubs, pull one of the INNER shafts in the front. A lot of people pull the front driveshaft thinking that actually improves mileage, but you are still turning the front differential.
The axle nut and outer stub shaft are VITAL to the front wheel bearing; if you don't have the axle nut and outer stub shaft the bearing WILL fall apart. My recommendation is to pull the left front wheel bearing and axle shaft and throw it in the back, replace it with a junkyard wheel bearing with just the stub shaft - that way if you need 4x4 you can swap it in in 30 minutes or so.
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