you want to eliminate the dummy tcase?:icon_confused: take it off then and throw it away! Just plan to swap the trans for one from a 2wd with a flange on the end. Also a new d-shaft. You are gaining nothing by removing it, unless you are putting a real tcase it to make it 4x4. Otherwise it seems like a waste of time, money, and energy.
You might be able to take the extension housing off of a 2wd trans and put it on a 4x4 one. You'll have to search a little more to see if its possible.
I want to put headers, thrust mufflers and better air filters to help with gas mileage and performance
Headers will almost do nothing for a 2.9 if that's what have. Mufflers Could be okay if you want it louder. Air filters will pretty much be the same as headers. These motors can not really be upgraded for power. They are already maxed from the factory.
Sorry to tell you but if you want more power swap to a bigger motor.