Actually it's above the dash brace on an unpainted metal part of the dash panel. I researched this yesterday since alot of people have asked about it. attached is my first drat of a write-up on how to improve the instrument panel ground.
Improving the Instrument Panel Ground
The ground point for the complete instrument cluster on your XJ or MJ is located up under the driver’s side dash. If you lay on your back and look up under there with a flashlight, you will see a black wire attached to a shiny piece of metal almost directly above the hood release knob. The screw will have either a ¼” or 5/16” head on it.
This ground point is responsible for handling the ground circuit for the following items: Dome lamps, Seatbelt and key warning, trans comfort switch, wiper switch, headlamp switch and delay module, fog lamp switch, cargo lamp switch, all instrument panel grounds and illumination, power windows and door locks, cruise control dump valve, and a few more things.
The problem is that where the ground point is located does not have a good contact with the chassis where the ground should be. The solution is simple.
Make up a jumper wire with #10 gauge wire about 10” long. On one end, crimp on a ¼” round wire terminal. On the other end, crimp on a 3/8” round wire terminal.
Remove the screw from the existing ground wire and attach the small terminal of your jumper so that the original wire and your new jumper share the same attaching point.
Look above the driver’s side plastic kick panel just forward of the top of the hood release knob. You will see an 8mm stud there. Attach the large terminal end there with a washer and nut over it tightened securely.
**Special note for Comanche owners: Make your jumper wire 12” long and attach it on the driver’s side kick panel close to the fusebox on the 8mm stud.**