Your best bet is a complete donor set-up with engine and trans. With your 4x4, you want to look at one from maybe a v8 explorer or a mountaineer fro the easiest fit. I don't know how the dana 28 will hold up, but you need to swap out to an 8.8 rear. the rear from a mid-90's up 4.0 ranger is a direct bolt in. If you go to the tech forum you can get the axle codes, which will greatly simplify your junkyard search. Obviously, with the new drive train you will be doing some fab work, but it's not as hard as you think...Also, if you don't have a body lift, you may want to consider one, it will make the swap way easier.
You are on the right track. My original plan was to run my 2.0 until it died, then swap in another 4banger. After reading everything on the forum, I decided that a v-8 was doable. It took me about 6 weeks of working at it in my spare time on my off days, but now I have a 5.0 HO with an AOD and an 8.8 rear. It was a project, but worth the effort, I smile everytime I start it up.