98 Xj distributor squeaking!

[Cheromaniac]

Sounds like a classic case of a worn distributor shaft bearing. If you leave it, the problem will only get worse and cause a wobble in the shaft that'll ultimately break the rotor and leave you stranded with an engine that refuses to start.
Just get a new OEM distributor as a replacement. The job itself is easy. Before you start, just turn the crank with a socket wrench until the 0* timing mark on the harmonic balancer is lined up with the pointer on the timing cover and the no.1 cylinder at TDC on the compression stroke. Note the position of the rotor in relation to the distributor body before you remove the old distributor. Then when you install the new distributor (with a new gasket at the base where it meets the block), just make sure that the rotor is in the same position.
Finally, when you attach the plug cables to the distributor cap, make sure you have them in the correct position and firing order. Job done.