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Strictly off road. I am assuming big tires? You'll need a lift and/or a Sawzall. Trimming will be necessary.
I'd keep the engine. No need to spend money on a fancy swap. I am going to assume it's an automatic and quadratrac?
When you go big tires you will want to change the gearing in the axles, unless you really don't plan on driving it on the road. In which case you might consider spending the money on a 4 speed transfer case like the atlas. This will give you a lot more flexibility off road,
If you are going to change the axle gearing you should toss in lockers. You might consider going with heftier axles too.
X2 on the above comments. Also, Id Tub the rear fenders to fit the bigger tires and trim the front fenders. The Wagoneer rear fenders are a serious restriction--just get rid of them. You can have a lot of fun with Big tires, good gears and Lockers. Then as you continue your build add stacked Transfer cases, Ram steering, bigger axles and on and on to fit your desires.