Phil Howell (Editor of 4WD & SU Magazine) has done a 2.5L build with 5.38's as well as several others with 5.13's and they also had the Tera. His other projects ran 35's and 5.89's.
I was just reading in this months (Aug 10) 4WD&SU Phil's 4word page 8. It's about the projects he has done that didn't work out. One of them is "the little engine that could" I am pretty sure I remember this one. It was back in the mid-late 90's. It had F9inch axles with IIRC 6.50 gears, say's in the 4word 5.60:1 something, 5 speed,Tera Low." The little engine that couldn't. It returned 10 MPG at best because my foot had to be buried to the firewall to get the Jeep to move. Bye,Bye.
I am pretty sure it had 35's since that was the largest radial at the time. If it's the one I am thinking of it was white. IIRC it was sold to a guy in Socal.
I like Phil. I like the way he writes. I have talked with him at Moab a few years ago. He has a voice that you won't forget once you hear it. It's very deep.