Get a proper diagnosis of the problem. If necessary, I'd go with a salvage engine like others have suggested. Last year was 2004 for the 4.0 I6 engine.
You're about to get into some costly end-of-life issues with that Jeep. I have 197,5xx miles on my 1997 with a clean, solid, quiet engine. Oil, filter, and lube have been done every 3,000-4,000 miles.
On the other hand, I have replaced the exhaust manifold, coils, ECM, the fuel pump and the water pump and had the rear end rebuilt. It needs an antilock brake unit, a transfer case, and a catalytic converter.
It's still cheaper than payments on a newer vehicle with that kind of capability.
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