You'll need to adapt your tranny to the Jeep np231.
Axles are fine....unless you're putting in 500 hp and or running 37"(+) tires while trying to set the fastest time across the Rubicon ever recorded.
You don't need a lift..
The SBC is right at negligible difference between it and the 4.0
Matter of fact if you take a 454 BB and put on headers/ aluminum intake it's approximately only 75-100 pounds heavier than the 4.0
Think about that.
The concern....
Why would you want to go back to a carburetor?
Carbs suck...I mean absolutely suck....off road. They're shitty enough on the street but off road even more so. Fuck that!! Hills, rocks small and large, off camber, etc...all make a carburetor exceptionally aggravating!!!!!
Now if you just want to buzz around town with more power occasionally seeing a speed bump as the extent of your 4 wheeling ok...
but.....
That's completely blasphemous to the beloved Jeep name and REAL Jeep platform.
Wheel the damn thing but mark my words if/when you do you'll hate that carburetor.
One other concern....we've done many swaps over the years and it's nice having freedom. What I mean is freedom of engine placement. The older SBC have that big ignorant object right there in the back to get in the way of the firewall/tunnel beginning. Better known to you as a distributor.
Back in the day we did more SBF's in Jeeps because you always wind up changing the tranny as well. (Jeep used one really strong tranny in all it's day and odds were never good the patient had the T18.)
Ford SB had the distributor out front and we could strategically place everything in perfect locale for the new engine/tranny and have none to very minimal driveline issues and exhaust issues.
Food for thought...
Keep your Turbo Hydramatic 350 and list your 1968 327....
Someone probably not far from you wants/needs a 327 from that era for a restoration project.
You could get enough money to get a distributorless EFI Chevy and you'd be much happier!!!
I'm not an LS guy and don't beat a LS or death drum but if Chevy is your thing the LS would be light years better than using that 1968 327.
Good luck!!!