Terminator upgrade? I need more information because my AX-15 is old. I really really want an AX-15 with a 4.3 or 5.15 Toyota first gear, but I can't seem to find much info on how to do that.
The problem without extending the wheelbase is that your rear driveshaft angle is going to be an issue pretty quickly. People already shorten up the NP231 with tiny slip yoke eliminators to handle many of the 3+ in lifts, especially with a tummy tuck, which I want. If you have found otherwise, I'm all ears, because I really want an Atlas 4. On top of that angle issue, you may need a bigger U-joint, which will give the rear driveshaft less flexibility.
However, you're doing an engine swap. MOVE EVERYTHING FORWARD. And if you move it forward, I would think very heavily about the R2.8, but it's gonna be tight. You will definitely have to relocate the DOC and the oil pan may be an issue, but maybe you can move it forward an inch and then with adjustable control arms, push your rear axle back an inch or 2 for some really nice clearance when you're finished. I thought I've read that when guys start running 37s or more that they tend to do a stretch.
On my YJ build (hopefully it'll happen this decade), I'm already planning to stretch it several inches, but I'm gonna go with a doubler 231/300 and I'm planning a TR-4050 or I've seen some lighter NV4500s.
As far as the 4BT being cheaper, they certainly used to be and from what I could tell was that I could get one for $4k. Then to rebuild and upgrade it, I'd be around $4k or more. The p-pump, if you could get the one everyone likes is a pricey injection pump on top of that, so you could easily be in that engine, depending on what you can find and who you can get to work on it and their pricing for more than a R2.8, all said and done. R2.8 is about $8k out the door. Installation is a problem with either, but kits are very pricey for either.
I think the 4BT is more rugged and would handle the 400 ft lbs better than the R2.8, but to get there you're gonna have a lot of money in the 4BT, if you are paying people. The R2.8 can be turned up to 400 ft lbs just by a quick tune (EFI Live is $1,300 or a mild tune runs about $1k), but I'm not sure it's proven reliable at that point on anything that's had more than a handful of miles on it and that is very dependent on how hard someone is on it. Now down the line there's talk of an aftermarket crankshaft to stroke the 2.8, which would be very cool to see it at around 3.2L and with a built bottom end your guess is as good as mine what all it could handle. Bottom end is fairly light duty on the R2.8 from what I've heard, so eventhough you can tune above 200 hp and over 400 ft lbs, I wouldn't trust it for something I want to get 250k miles out of.