I have a buddy who has a 2000 Xj and has a bad filter possibly pump. The filter is dealer only for about $120 and the pump is $400. I am sure we could find it else where if he looked. Can we change his in tank filter and pump over to an older style like a 97 that has the pump in the talk and the filter outside? I only ask this since they are a lot cheaper and more affordable. Seams the onlt thing the pump needs is the power wires, and lines. Any one know?

Look at the prices at the Autozone web site before you pay $400 for that fuel pump. I didn't see a filter but try somebody like NAPA before paying that much for that.
http://www.autozone.com/home.htm
There is always a Facet pump that you could do external style if you wanted to make a custom install-but the internal pumps are always quieter and run cooler. You can get a hellava high performance pump for $400 for that matter, but it doesn't seem necessary for a stock motor'd vehicle.