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I've got a 258 in my CJ7. It has the Weber Redline Carb, an aftermarket cam (but the guy I bought it from didn't know the specs of the cam he said Roy Carl did all the work), with an HEI. It makes some nice power. I do have a complete glass body though and I'm turning 35" boggers.
I will say running a 360 is a totally different animal. My brother did the same actually, took a 258 CJ7 Laredo and dropped a 360 in no problem. It was a beast. He did have to bend the headers a little to get them to fit properly but that was it.
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