quick drivetrain question.
 

a buddy is looking at a 89 XJ with the 4 liter. does that have the AW4 and same transfer case as my 95?

89 should have a NP231, i think yours will ahve the 242. does your tc selector read 2HIGH, 4HIGH 4LOW.

Yes except the trany in the 95 has a 23 spline output shaft as well as the xfercase,the 89 is 21 spline,the tcu's are different also.
But they are basically the same.