So here is the current plan, i just picked up a sweet MPFI engine from Moosens, and an even sweeter RX D/R diff lock from Moosens-Wagonsonly, thanks Andrew

 

The theory is now to put them both into the 88 wagon, but with one twist, I'm gonna see how well the T-Case swaps with the NA dual range so that i can keep my low range of 1.59 but have the AWD around town. and a center diff lock when i need it, the beauty of this is that the DL already comes wired for the Center diff, which in that application was open or locked, not awd and locked.

 

The rub is that its a 3.7 and thats not so good for the offroading, so i'm gonna see if i can put the diff lock on the NA D/R which would be teh hotness. i'll let ya'll know about the wiring once i figure it out. it should be cut and paste.

I've got some good news and some bad news. Let's start with the good

 

You should be able to get the 1.59 low range ratio that you want, but not the way you think it's done. The low range gear set is located in the front of the transmission on the input shaft. You should be able to swap the gear set with one from the N/A D/R.

 

The bad news is that the output shaft for the fulltime 4wd transmission is machined dfferently then the N/A 4wd because of how the center diff works.

I'm positive i can swap low ranges, but i know that the diff may be an issue, i have the fsm and may have the time to hammer out the details, and if successful a writeup will follow

getting the front and rear diff ratios right is gonna be the hard part unless you already found a tranny. that one sounds pretty tough to find.