Power or Comfort
 

I've been running my Jeep for thepast month on Power mode with my 35's, and SEEM to be getting better gas mileage than when it was on comfort. Is this bad for the transmission and should I actually be getting beter gas mileage (opposed to comfort)?

power. it is better for the trans. all newer models were hardwired in the power mode. comfort is useless with bigger tires.

Yep

x2

"Comfort" is a mode that makes for softer shifts, as well as shifting away from the point where the engine is most efficient (which is why you "lose power" - it's not that you lose it in se, but you're working outside of the range where the engine makes peak power.)

As mentioned, this was eliminated and all transmissions were hardwired into "Power" mode. On my RENIX rigs with the AW4, I put the switch in "Power" and left it there, until I got around to hardwiring the mode myself and repurposing the switch.

"Comfort" actually accelerates wear on the clutches slighly, since the shifts are softer and they take a bit longer to engage. It's kinda like "riding the clutch" in a manual - with similar effect.