Narrowing an 8 1/4" rear end, how is it done?

Additionally, depending on the year, it may have a flange-type pinion yoke that will need to be dealt with, either by replacing with a U joint yoke or using the driveshaft end adapter from the Jeep, possibly with an adapter U joint.
On the subject of the Jeep Liberty 8-1/4, if the Liberty rear axle companion flange is like a Dakota or Durango, then it takes a 1330 U-Joint. Have a driveline shop put a 1330 yoke on your driveshaft for an upgrade over your rear 7260 U joint. There’s no comparison in strength between early strap and bolt setup vs. the newer bolt on companion flange fixed yoke arrangement.
Dana Spicer Drivetrain Products 2-2-1379 Spicer Drivetrain Products Flange Yokes | Summit Racing