1) have Willy’s with two axels but rear is bad, do I replace axel and upgrade brakes or swap for later model with disc brakes and cut the chassis to fit
2) want to use a supercharged V6 and S10/ Blazer 4x4 automatic transmission , transfer and maybe chassis and power steering which will apparently match up to V6 if it has split bell housing
3) as another alternative I located a later model Grand Cherokee 4.0L transmission and transfer case with OD
4) Since I have OD in either transmission I can use Dana 44 or Ford 8.8 rear
Your opionions?

My opinion (your mileage may vary) - if it's all original - don't start hacking on it !

If you can find a repair shop(or do it yourself) with the know how, use original parts or original replacement parts.
It'll go together easier, live longer, be "correct" and maintain it's value. If it's already too far gone - do whatever you want! Hell - it's yours already - get at her!

 

Looked at that alternative as well and have found a donor chassis from a Willy’s truck with the original Continental flathead six and transmission which should be an easy swap aside from the required chassis chop, but would really like Saginaw PS ( period close) and disc brakes ( saftety)

 

Power steering shouldn't be to hard to do, but disc brakes were never an option so I see where swapping axles comes in - plus (for me) that's safety factor worth adding (plus the old axles are in unknown internal condition). Get'er done! Take lots of pics during the build.

 

If you are clever with a welder, crawl under a late '90's or early 2000 model Land Rover Discovery.
I have a friend who installed Rover axles and suspension under his '62 Willys wagon.
The Discovery's have two different axle widths depending on year model.
The narrower fits the jeep cj widths.
The wider-track Discovery fits the willys wagons very nice.
If you go to Pick-n-Pull on a 50%-off day you can get both axles and supension for under $500;00.
Graft the radius arms mounts and coil spring buckets to your frame and Bingo, late model axles with disc brakes.

For my future '57 Willys utility wagon I have a Dana 44 w/ discs for the front.
The BOM numbers stamped into the rear face of the axle tube says '74 IH Scout breakdown.
I'll have to re-gear, unless I decide to go the full Land Rover Discovery axle and suspension upgrade.

Oh, for power for my '57, I have two '70 Olds 455 marine engines to choose from and a fresh refurb TH400.
I am not sure yet of transfer case choice. Hmm

Early Honda Passports had Dana 44 rear diffs with disc brakes.