Just a bit of what little I have gathered with my pangas:
- The 2LT does not sit too comfortably with the stock Pakistani CJ7 axles/diffs which are invariably the Dana/AMC 4.1 (10:41) originally for the high torque AMC 4.2L engine.
- Toyota apps of the 2LT have been with much lower gearing of upto 4.88s on the TLCIIs, Surfs and Hiluxs and even higher (5.32ish) with workhorse Hiluxs and Surfs.
- At the low end in Toyota apps, the 2LT relies on the lower gearing of the axles/diffs to haul its puny **** until the biggish CT20 turbo kicks in at around 1800-2000rpm and delivers boost up until close to the 4000rpm red line.
- With the high speed 4.1 ratios of the CJ7 the 2LT is quite the loser at the low rpms and hence struggles in real offfroad situations where at the end of the day it can never match up to the B series and KZ engines anyways.
- On the road, a good 2LT (new/II) conversion on a lightweight CJ7 can actually quite exciting. With a little extra fuel from teh pump and added boost from the turbo, you can actually give the big boys a good run for the money..... as long as you don't boil the water and cook things into a pistun curry with its rings
- On cracked heads, my view is that extensive use and abuse of a few things on have contributed to its nasty reputation: bad cooling, high speed diffs, bigger tyres. I don't think that there is an inherent flaw in the engine design otherwise Toyota would not have stuck to the basic design and it would not be one of the most common engines in Afghanistan and Baluchistan.
- A second turbo setup in sequence, without too much boost to add some grunt to the low end would perhaps be the best upgrade for an engine that is reportedly going to be available very very cheaply in the near future if not already.
.....[I].I take this stuff too seriously, I shoudl just buy a Pajero and give up dreaming of German cars 
