Jeep Cherokee Forum - Hello! Just bought a project Jeep

Hi everyone!

I just wanted to introduce myself and make a mark on the forum as I suspect I will want to really pull some knowledge from here as I get this Jeep back into shape.

I have been looking for a 4x4 for a while to take on desert and fire trails but have pretty much given up my search and decided to use my F150. However, our daughter just turned 15 and sitting at breakfast yesterday we were all talking and realized that we needed a 3rd car in about 6 months. So out of curiosity I pull up craigslist and 2nd from the top (posted about 20 min prior) was a 1992 Jeep Cherokee Laredo 4x4. It was running when the owner got it but he noticed a slight knock in the engine and started to tear the engine down for rebuild. So this is the condition in which I bought it for $300 (he wanted it gone that day and we happened to be the first people to call).

The Jeep:

1992 Jeep Cherokee Laredo 4x4
360K
Auto Trans
Clean Title
Catalytic Convertor Still Installed
Interior about 80% (headliner, some trim pieces, needs a good cleaning)
Exterior Body with zero rust
Under Side and frame zero rust
Engine needs to be put back together (potential knock)
Needs a battery
Supposedly the 4x4 and all electrics work fine
Looks like it needs some new rear leaf springs
Steering column is loose

So anyone that reads this do you have any advice as I begin this project? Should I put the engine back together and then listen for the knock and start a rebuild or should I continue the engine teardown? Any idea on what the knock may be (the owner thought it was a bearing)? Anything else I should look for in this vehicle or a certain pathway I should take while getting it back to roadworthy (buying this or that upgrades etc that will save me money in the long run or keep me from doing something twice)?

Thanks a lot guys and I really look forward to getting this Jeep up and running again... it is a beautiful vehicle.