Welcome to the forum!

You'll be amazed at what these vehicles can handle with just a 2" lift and some skid plates. I also had a 2001 XJ at one time.

...but, QD1 didn't come on an XK. It's either QuadraTrac-1, QuadraTrac-2 or QuadraDrive-2. Since you have a 4.7L Limited, you probably have QT2. It has the t-handle to shift into 4-low correct?