Well, I found it necessary to finally do the 4.0 swap after my 2.5 died a violent but quick death.
I picked up a motor, transmission and wiring harness from a local Jeeper and swapped it in. (This is another story)
This gave me a great opportunity to swap in the jeep NP208 I had picked up.
For those who do not know about this case it is very similar to the Np231 that comes stock in most Jeeps. It is drivers side drop, has the same bolt pattern and has the same 23 splined input as found in most Wrangler
It has an aluminum housing and is chain driven. Note: larger chain
The transfer case is also a slight bit bigger and much stronger than the 231. It is used behind V8 in full size jeeps with no problems.
It also has an added bonus. It had a fixed yoke in the rear.
This case is found on full size jeeps made in the 1980’s
I test fit the 208 in my jeep and found it is going to bolt up with no problems.
One note: I use an auto transmission I have read that the 208 needs a 3/4 spacer if you are mounting it to a manual transmission.
Like I said the case is a little bit larger and stronger than the 231 so I raised my transmission mount 1". this enabled me to remount the original transmission skid plate. Getting rid of the skid plate drop I had before.
I have a 1.5" body lift and this gave me the room to move the 208 up the inch i needed.
My motor sits higher due to the 4.0 swap so my angles are still good.
The hardest part of the swap was the linkage. I took the shift arm off the np208 and took it to a machine shop. There, I had the arm drilled to accept the rubber bushing off the 231 shift arm. I then got a Tony to lengthen the linkage rod an inch to give me plenty of adjustment room.
( Thanks Tony 
)
The full size Waggoner that the case came out of, had a CV front drive shaft. I swapped the yokes from the front to rear this put a CV yoke on the rear of the transfer case and the standard one on the front.
My speed sensor was a direct swap out. I removed the old cable drive and inserted the new Speedo gear and lined them up.
I then reinstalled the transfer case, bolted in my front drive shaft and adjusted the linkage..
Results: I now have a Transfer case that is stronger than the Np231
Plus it has fixed CV yoke in the rear No more slip yoke!
I'm now waiting on an rear drive shaft to be cut and balanced but I have driven it in front wheel drive mode and the transfer case is working well.