I am sure this has been covered but I want to eliminate the awd and add a transfer case and or hubs to make it 2 wheel drive and then switch to 4h or 4l. what needs to be done and what is the average cost

 

you need to take out the 249 transfer case and put in a 242 or 231.
this is discussed in great detail over on jeepforum in the ZJ section.
cost depends on where you buy your parts. i have around $150 in my swap.

and if you just want 2wd for the fuel economy, dont bother. there is no difference.

 

I figured there would be no difference in MPG, I was just thinking for wear and tear on the front end components

 

no difference there either. all the front end parts (hubs, axle shafts, bearings, ring and pinion, etc) are all still turning, even in 2wd. the only way to benefit from 2wd in that sense would be to install manual locking hubs, but the kit is so expensive (over 1000 bucks IIRC) its not really worth it.