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Ok
First, there's the issue of it being illegal. You'll most likely have to replace the engine with one from the same model year or newer. I don't believe the cherokees came with carburated engines in '89. So depending on where you live, it might not pass inspection.
Second, If you were frying the computer and sensors, it sounds to me like you've got some MAJOR wiring problems. Such as a ground fault, abnormally high system voltages, or a dead short of 12 volts into the ground circuit. If your computer fried, then simply replacing it with a new one solves nothing, you must instead find the electrical problem and fix it before ruining more new components.
Third, Carburated engines still rely on electricity, so if you have electrical problems now, they're likely to cause future problems anyways.
I'd look towards either rewiring the vehicle and using the current setup, or finding a 4.0L Engine with the OBD-II compatible computer system (1995 or newer). :mrgreen:
-Nick :!: