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I was at Quadratec warehouse to pick up some jeep gear and i asked that age old question about 4.0 v 2.5...i know that the 4.0 is great...and i regret not getting one. The man at the counter said that the 2.5 can do anything that the 4.0 can do if its geared right. now ive heard all one sided stories about 2.5 v 4.0...like 2.5 is great or 2.5 is awful. so anyway on to the question...how do you gear it different? is that like a new transmission or what? and some good kits to get to do this maybe? im not sure...please help if you can. thanks!
 

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Regearing it means you change the ring and pinion gears inside the front and rear axles to a lower ratio. Whether that is a good thing and will improve performance depends on if you have installed bigger tires like 33" or not. If you are still running the stock factory tires, regearing would not be the thing to do as that would produce excessive engine rpms on the highway. But if you're running big tires like 33", regearing your axles to 4.88 would help your performance immensely by restoring the engine rpms back up to what they were with the smaller factory tires. :)
 
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