The key thing I read is that you don't want to dump a ton of money into it. If you are going with a V8 swap, be it a Chevy or Nissan V8, you are going to dump a lot of money into it. You have to take into consideration not only the motor, but the ECM and wiring harness and splicing it into the Xterras's main harness, fuel pump considerations (don't LS motors spec their fuel pressure around 60 PSI? The Xterra is around 36 PSI regulated), transmission and, if 4x4, transfer case, axle, etc. Plus, all that is time consuming, as well. On the other hand, the VG33E engine is not that hard to find and are usually not that expensive. A good, used engine with warranty can be had for $2K or less with a little searching. Try Car-part.com or Ebay. They were found in 96-00 Pathfinders/Infiniti QX4's, 99-04 Frontiers and 1st gen Xterras (obviously). The VG33E will swap right in without any compatibility issues. I would replace the timing belt & tensioner/water pump/front engine seals/thermostat and drive belts and hoses. I'd also reseal the oil pan and replace the rear main seal, which are two areas infamous for oil leaks, as well as the valve cover gaskets. Nissan cap and rotor, NGK plugs and wires and it should be good to go for a long time.
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