I have a 89 cherokee with stock 3.55 gears I would like to know what are the best upgrades that wont cost much that i can do to them and still be streetable dana 35 dana 30

 

Get a D44 for both. Most cost effective way to upgrade the D30/D35 combo.

 

You can also use the Chrysler 8.25 with the heavy axles. They are usually a little cheaper than a D44 for the rear.

The front is a little tricky since there is no direct bolt in replacement for a D44 front axle that width. You can get the Rubicon axles but they are wider and need to be modified to fit the XJ suspension and also need some upgrades since the housings are a little weak.

If you can't fabricate, then just get some good axles and a truss and you will be able to run up to 35" tires on the front.

 

Where's the best place to get them? And does it matter if you get 'em at a JY vs. buying them new?

 

buying new you will be looking at around a thousand dollars if you can even find new ones get em at a JY and rebuild them they will be like new just make sure they dont have bent housings or shafts and check for cracks

 

If you are looking for the Chrysler 8.25 or D44, you will need to check around on ebay and craigs list. Once in awhile you can find them at a pick and pull for around $300. Otherwise it will run you around $400 and up from a wrecking yard.

 

The reverse rotation D-30 in your 89XJ is actually a darn good axle. It's about 30% stronger than the later std. rotation D-30 axles in the YJ's and TJ's.
What you need to do is pull the shafts out and replace the dinky spicer 260 u-joints with spicer 760x u-joints. If you can afford it throw in a limited diff and new wheel bearings while its apart. Call the front good for now.

The D35 rear is another story. Start saving your money for a D-44 replacement axle assembly. Spending any money on a D-35 is a waste. Were I to do it again I'd save time and money and go to Currie and have a D-44 assemble it yourself kit shipped to my door.

Ideally save your money and do the front and rear at the same time so you can change gear ratios at the same time.

An option to hold you over would be install a Aussie locker, which is a lot smoother than the other brands, in that D-35 and with your 3:55 gears and a light smooth right foot get some light 4-wheeling experience.