Well RNandKT, the stroke on the 4.0 is 3.413" whereas the stroke of the 4.2 is 3.895". The 2.5 is at 3.19".
To offset grind amount for the 2.5 crank to the 4.0 stroke, would be about .110. I would guess it would bring the motor to about 2.7L.
With welding and offset grinding costs betwee 400 to 500 dollars, and some reasonable bookkeeping, it's probably not gonna be worth it unless you have a lot of disposable income. Same with sleeving the cylinders for bigger pistons. That's probably why there isn't too much information involving these engine mods. Oh, the voice of reason...
I'm not in the position to pour money into a custom motor with unknowns, so I'll think I will spend the bulk of my expense into a good camshaft from either Hesco or Clifford. Combined with .030 overbore, milling the head, and a little cleanup of the ports and combustion chambers, and like you mentioned, balancing and knife edging.
I think it could be a nice increase in power and torque while maintaing good reliability. Even this and all the other parts involved in a rebuild would probably run about $800. I would be happy with 20 to 25 extra hp. Hopefully enough to get up those highway grades, and keep up on backroads on my way to the trails.
Still very interested in hearing about others who've modified the internals of their motors. I