350 in a Jeep, this is what I like to hear! I'm new to the Jeep thing, been building Chevy small blocks since I was a kid! What year is the motor? Fuel Injected or carb?
The exhaust question... Yes you will need to have an exhaust system made. As for the headers, i would look into a set of "Street rod" block hugger headers, the take away A LOT of clearance problems when doing swaps like these.
2001 Cherokee Sport 2-door 4x4
2 inch BB
Surco Safari Rack w/ spare tire roof mount
4 Hella 500's on the rack.
JKS quicker disconnects
Moabs w/ 31inch MTR's