Two problems related to differential unit have been reported for the 1997 Jeep Wrangler. The most recently reported issues are listed below.
Blew rear differential and have never taken it off road or driven hard. Very angry and disgusted!!!! it's in the shop now.
The rear differential was cracked, as was the exhaust manifold. Also the crank sensor harness and the tps were melted against the manifold. The dash leaked water and the brake shoes/lining and rack and pinion set needed replacing. The drivers side seatbelt would never retract and the dash lead water extensively causing the resstr-blower to go out. The radio was also broken for a couple of months.