That model xj should have the 231 transfer case, I don't see why it wouldn't, I don't think limited's are much different then any other cherokees except asthetical features, I could be wrong however and as far as the lift, why not go for a 3 inch? You can still get 31's on there and you might not have to run an sye, no guarentee though. Just a suggestion. Good luck with everything.
If it ain't broke, it will be by the end of the day.
Past jeep- 98 white cherokee, 3" zone lift, 31x10.50 general grabber at2's, bds steering stabilizer, 15x7 soft 8's with 4" bs~R.I.P