this is a 96 jeep grand cherokee limited with a 5.2L V8 motor. The vehicle was recovered after being stolen and the ignition was torn from the steering column. After putting the remnants of the ignition back together, I am able to turn the key and the lights on the dash come on, I hear the fuel pump. The starter makes a clunk noise when the key is turned, so i pulled it out and had it bench tested and its fine. The alternator is new. The motor is getting fuel as well.

When the key is turned and I put a multimeter at the battery, it starts with 12.5 volts and when the key is turned the voltage drops to 8 volts and the "clunk" noise is heard every time the key is turned on to try and crank it over. The engine does not turn over at all. Sometimes while trying to turn the key on the "clunk noise" is heard and when holding the key down there is a whining sound as well but the engine does not turn over at all?

I have heard it cant be the CPS because i hear the fuel pump?
Ideas please?:banghead:

Unsure about this... But what you describe sounds a little like the sound a solenoid makes when it is not working properly on older vehicles. I am not sure if your jeep would have one on it and if so it probbly is built onto the starter which usually means replacing starter.

By looking at some pictures it looks like it is built on.

Try a different battery, maybe that one just isn't quite strong enough?

tap the solenoid with a hammer next time