I'm gonna swap my 8.25 out for a ford 8.8 rear outta 97 or newer explorer just for disc brakes. Swap looks pretty simple other than 1 thing I'm curious about. 1. After swap will I be able to reuse driveshaft? I've got a Tom Woods driveshaft & Advance Adapters SYE. Has anyone here made this swap or build thread with info?

You will need to get a different yoke for the 8.8 and your shaft will be too long but not by much. Put it in and flex it slowly to see if you have any bind.

How possible would be to move differential back a touch I've seen couple of kits to weld new mounting hardware on 8.8 to fit cherokee's so may be possible to adjust I don't know for sure though I don't have parts in front of me yet lookin to find rear & rebuild it this year atleast maybe install as well depends on funds. But when I do I'll have a rebuilt C8.25 with 4:10 ratio installed & factrory 3:55's with for sale.

if you order a swap kit from ruff-stuff they have an adjustment in where the leaf mounts. 3 options. I think from looking at it that it has 1/2" further back or further forward, and center, but doesn't list the exact spacing
http://www.ruffstuffspecialties.com/...roducts_id=186

a little cheaper but more custom. this one shows the holes i am referring to. but in ruff-stuff's kit the ubolt plates have the holes for all 3 settings already drilled.
http://www.ballisticfabrication.com/...it_p_1699.html

You can get a Grand Cherokee rear disc brake set up or one from a Liberty for your 8.25.
It will be much cheaper than buying an 8.8 and everything needed to install it. Unless you plan on running 37 inch plus tires the 29 spline 8.25 is plenty strong.

That's what I did. Moved my axle back and little, got an adapter for my rear ds and all was good.