I had my 242 behind an SR4. It will definately work just fine. Don't plan on keeping the SR4. The shift lever absolutely will break on you eventually. I've broken 6 of them. A T5 is totally interchangeable and they are often available under $200. Start scanning the Clist adds now and one will eventually pop up for cheap.
When you swap transfer cases you have to keep the front driveshaft yoke from the stock Eagle transfer case and then bolt it to the 242. The XJ version is drastically different but it just unbolts, slides off, and the Eagle one slides right into its place. It's held on by a big nut about 32 mm. If you need to buy the correct socket I can actually look in my notes and I've got the size written down in my garage. The 242 case is a derivative of the NP129 case, so the dimensions are exactly the same in the front. You will have no problem with your front driveshaft whatsoever.
Your Eagle speedo cable works with the NP242.
I try to avoid using the stock Eagle speedo cable because you have to dump all the transfer case fluid every time you pull the transmission or engine. I'll be using the XJ adaptors that can be disconnected without pulling the entire assembly out. I need to order a cable the right length that has the exact same threads on both ends because the VSS threads are identical to the threads on the back of the Eagle speedo itself. I have a link saved from someone else here on the Nest where I can custom order quality Speedo cables with any standard end already installed.
There is a transfer case cable shift kit made by Novak. I haven't bought it because I'll just make my own from an old transmission kickdown cable before spending what Novak wants for their kit. I did buy the Advanced Adaptors hard shift kit and am experimenting with that right now as well. That might be a great option but I'm not sure exactly where it will come through the floorboard yet. It uses a YJ shifter that you grind off the rivets, discarding the old bracket, and then bolting the shift mechanism to the bracket supplied in the kit. I picked up an old YJ shifter from a guy near me who parts out Jeeps on Ebay for a living. He has several more ready to ship and he only charged me $20 bucks for it. We'll see how that works out soon.
I don't know the dimensions off hand of the pipe I used. I won't be in my garge to measure it until Monday. The important dimension is the inside diameter. If you take your old driveshaft apart you can measure right there at the widest point on the splines, which gives you the measurement you need to look for in Inside Diameter. The pipe I used came from an old handrail. It is the style of handrail that gets threaded and pre-cast bolt together joints are used at junction points. I'm betting its a standard plumbing pipe size. You can see in the pictures that it's outside diameter is nearly the same as the end of the driveshaft.
When I said that the NP219 is near useless I was thinking that it had an open differential 4Lo. I think I was mistaken there, I'll have to check the 219 I've got. I went to check my facts and its the NP249 that started off life with 4Lo being open differential. A few years into production they fixed it by changing the NP249 to be fully locked in 4Lo. Having 4Lo be open differential is a cruel joke. It's when you're going slow or at a total stop struggling to start that you need the outputs locked.
A NP219 is a great upgrade over the 129, but they really aren't worth your time unless you find one very cheap. It just doesn't have any advantages over the 242. The 242 is faster and easier to install than the 219 because it just requires a 3 inch piece of pipe cut to install it while the 219 needs your speedo casing drilled and reclocked. The 242 is more reliable and considerably better designed. It's more common and often cheaper. If by some miracle the 219 viscous coupler was working you would and should be afraid of it overheating over extended use. The 242 has an internal oiling pump and better oiling design with no loose silicon fluid floating around to damage bearings, and a fully locked mode where you can beat on it for any length of time without worry of damage. The 219 viscous coupler can't be repaired and won't last, so it's just a liability to the bearings. The NP242 happens to be the same transfer case used in military humvees. It has a higher torque rating than the 219. It's a better choice for most people.
I haven't mentioned the 247 or late 249. The NP247 is the way to go if you value the viscous coupler and want to use your Eagle exactly as the factory inteneded. Both of those are great choices as depending on how you plan on using the Eagle. The 247 has a superior limited slip mechanism and the late 249's have a lackluster viscous coupler that is still considerably stronger and better designed than a 219. I'll be installing several 247's in Eagles that I intend to drive on road primarily.