http://www.dieselpowermag.com/tech/general/0811dp_jeep_diesel_engine_swap/index.html
interesting note:
Sourcing Parts Globally
In the U.K. they call their junkyards breaker yards. The 2.5L VM Motori is externally the same as the pre-2007 2.8L that went into this Wrangler conversion. Since Jeep Grand and XJ Cherokees both came with the 2.5L stock in other parts of the world, this means the parts exist. Used Jeeps with five-speed manual transmissions and diesel engines are selling for less than $2,000 in Europe. At that price one could purchase the whole vehicle and ship it to the U.S. Once here it would just be a matter of bolting the different powertrains and electrical systems in place. Another option is buying the parts from an '05 or '06 Jeep Liberty that was sold in the U.S. with the 2.8L.
Also note they stuck w/ the OEM Mopar fuel filter setup, looks like someone hasn't being reading L.O.S.T....

Not to mention the older 2.5 in the XJ doesn't hold a candle to either the 2.5 or 2.8 in the KJ.