There is a bit of horse power gain with porting but a lot of work as well.
Usually you only need to do the intake ports but most do the exhaust as well.
You take a new intake gasket, place it on the intake and cut away/grind any metal within 1mm of the gasket's seal for each port, the 1mm is for when gasket is compressed and expands.
Then take the same gasket and put it on the head, repeat process.
Now when the head and intake are bolted together each port lines up exactly.
Polishing is mostly done in the head with valve removed, you will see casting ridges and rough surfaces inside the port passage way, these are polished to give smoother flow.
Most newer intakes are already pretty smooth inside, but up to you.
You can do the same on the exhaust side but I would get headers and then match to those.
The thing about the exhaust side is that "rough" flow is really not a issue, like it can be on the intake side.
There is good info on mods to the 2.3l on this page
http://www.therangerstation.com/tech_library/4cylinders.html