Yes the t-case will hold up, but as Xpress mentioned, you will need an adapter kit because the output shaft on the ford trans is different. Advance adapters has what you need. AND the dana 35 rear end will "possibly" hold if you keep your tire size at 30" and under and stay off the skinny pedal.
But if you are increasing the engine size you are probably not going to remain stock any where else. So the turdy five gotta' go.
The Ford 8.8 rear end out of a 96-01 Ford Explorer is the most popular swap. Make sure your front and rear gear ratios are the same. Yours are 4:11 and the Ford Explorers came with the 4:10 ratio (as long as the ratios are within 3 you are good) on the models with the towing package. You get the benefit of rear disc brakes too. Big plus.
I have done this axle swap and it's easy. I'm still running the 4.2 engine but I'm on 33X12.50/16s. Those would eat a Dana 35 on the first climb.