Hold on now..
I didn't specifically recommend a dodge diesel, but if that's what you want I suggest you pull a tape measure on one of them and the space in your engine compartment.
An easier fit would be the Cummins 4BT.
For either one I suggest you browse through
www.4BTswaps.com to learn about them and swapping a diesel in general.
For some steering and brake upgrade ideas have a look here
http://www.stovebolt.com/techtips/bigbolts/p30swap/Depending on the weight of your jeep a 4BT probably with some upgrades may pull it just fine, or might not be enough power to keep you happy?
I think you're in a tough spot, you want to tow something substantial with an old and reasonably small (under the hood) truck. Not a lot of room to fit larger engines in there nicely, and you should upgrade the brakes too. Lots of work..
Grigg