Recently bought a '86 jeep Cherokee Chief V6 2.5 liter, 200K + miles at a extremely good price. It runs good 4x4 works great. It does need tuned up and minor adjustments here and there...
My question is ... Yesterday driving it, checked oil prior it was ok, drove it and it started chattering and oil pressure dropped to 0psi. Stopped and looked under hood and check oil and oil was empty with oil on the ground and coming out of right side of the motor (standing facing the motor). What do I need to check and look at to fix this problem???
Any and all info on this an other adjustments are greatly appreciated.

WOW...that is a tough one.
The GM V-6 in there is the 60 degree 2.8L.
If original..crankshaft and rear main seal...It is is going to leak a whole bunch....and will leak a quart a week or worse.

Also..don't neglect to check the oil filter area. (Edit: I was thinking 4 liter...but check it anyway and maybe the oil pressure sender.)

Search: jeep 2.8L oil leak.............I did a search on Yahoo for you and came up a whole bunch of possiblities.
Here is one: http://www.automotivehelper.com/topic444809.htm

Don't see may 2.8s on the road anymore.

Last tip: clean everything off..so you can see the leakage better...mine leaked at the rear main.

Had it towed home and looked at it more closely. It may have a rod knocking??? How would you know if it is the bottom rod bearings and what to do to fix it?
Thanks

Did you put oil in it and restart it? That would be first.

Yes, put oil in it and it stopped knocking for a few minutes and lost oil and begin knocking again.

It still has oil in it (stayed in) but it started knocking again.

Let see, oil did not leak all the way out? Do you have oil pressure?

You can pull spark pull wires one at a time to see which cylinder causes a change.

First we need to be clear on the engine,is it a 2.5,or a 2.8?
2.8 is v-6 2.5 in 4cyl, makes alot of difference.

2.8 Liter V6 automatic trans.... It is holding oil pressure.

Try my idea indicated....

You can pull spark pull wires one at a time to see which cylinder causes a change. Then we can talk about rod bearings or main bearings or something else. Even could be worn timing chain and nylon gears. Or loose flex plate screws.

Where is the oil leaking from? and what grade oil are you using?

castro GTX 10w30, and I think I have decided to just rebuild the motor and then I will know its a good one.

Uh..IMO...that could cost a lot of money...When I did mine in 89...it cost $2000...plus my labor to rebuild.

Again, IMHO...I have two 4.0L XJs currently and don't miss the 2.8L at all.

The 4.0s don't cost much anymore...
BTW...the 4.0 won't fit the 86 body...

Best regards,