Looks like a good Jeep for a project vehicle. Solid, and a great place to start.
You might want to reconsider the Webber carb and go with an MC2150. The Motorcraft carb is a direct bolt on, and performs better than the Webber. At least it did for me. Plus the MC carb is what was on your motor when it was in a CJ and called a 258CID instead of a 4.2L.
In order to do a carb swap, you either have to perform the nutter bypass, or change the distributor to aftermarket. Because if you take the computer's ability to self adjust the carb away, then the only other thing it can adjust is the timing. The nutter eliminates the computer from doing this. So does switching the distributor to something like an HEI.
'87 YJ, 4.2L built and bored, 8.5" of lift, 8.8 rear, AX15/NP 231, Tom Woods drive shafts, Flat fenders, 12,000LB winch, Custom bumpers, Rattle can paint job. Never completed...