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This may be an old subject, but because my (used) Jeep is new to me, this recall was also. Also, none of the previous owners took care of this. I found the following on another forum :

"EMISSIONS RECALL E22– REPROGRAM THE POWERTRAIN CONTROL MODULE AND INSPECTION OF THE CATALYTIC CONVERTER
Dear: (Name)
The Administrator of the U.S. Environmental Protection Agency has determined that certain 1996 model year Jeep® Cherokee and Grand Cherokee vehicles equipped with a 4.0 liter engine and certain 1997 and 1998 Jeep® Wrangler and Cherokee vehicles, and Dodge Dakota pickup trucks equipped with a 2.5 liter engine require modification in order to comply with requirements of the Clean Air Act designed to protect public health and welfare. DaimlerChrysler Corporation (DCC) has determined that the modifications required by EPA will improve the vehicle’s ability to monitor the performance of the emission control system and may reduce the emission of pollutants that are regulated by EPA under the Clean Air Act. Because DCC has achieved this improved emissions system monitoring without compromising the safety or driveability of your vehicle, EPA and DCC strongly encourage you to bring your car to a dealer to perform the modification.
The problem is... The Powertrain Control Module (PCM) on your vehicle (VIN xxxxxxxxxxxxxxxxx) contains software that may not be capable of detecting a deteriorating catalyst. This can result in failure to illuminate the On-Board Diagnostic (OBD) malfunction indicator light (MIL) warning the customer of a potential problem. Also, under certain conditions, some catalytic converters may be subject to mechanical degradation that causes them to rattle. This catalytic converter degradation eventually could result in higher exhaust emission levels and the illumination of the MIL.
What your dealer will do... DaimlerChrysler will repair your vehicle free of charge (parts and labor). To do this, your dealer will reprogram your vehicle s Powertrain Control Module. The work will take about an hour to complete. However additional time may be necessary depending on how dealer appointments are scheduled and processed. Your dealer will also inspect your vehicle’s catalytic converter. If the catalyst is found to be "rattling" or loose, the dealer will replace it free of charge (parts and labor). NOTE: This recall does not include the replacement of other exhaust system components. If other exhaust system components require replacement, the associated repair costs are your responsibility. Your catalytic converter warranty period will be: (A) eight years or 80,000 miles from the vehicle’s original in-service date; or (B) twelve months or 12,000 miles from the date your recall service is performed, whichever of (A) or (B) is later. "


I had my cat replaced for free on my '98 TJ and they "flashed" the computer (in 2006), and recently received my first "Jeep Service Notice" in the mail, and they mention the E22 recall in it.
 
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