jason, i have the 8.8 in my yj, and have had no trouble with it.
as far as the installation, i may have someone that can help you with that. check with jim at
www.jcfabanddesign.com
he is located at the 5 and 14 freeways, but worth the drive. he did my 4.88 gears, and arb install.
when you do the gears, you may as well take care of the locker at the same time. i highly recommend the arb locker.
let me know if i can give you any more info on jc fab, or if you would like to get a look at my set up... i am right down the street from you.
let jim know i sent you and to give you a great deal.