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The factory ignition serves as a rev limiter at about 3000rpm. You need to upgrade your ignition with one of the many methods out there. I'm sure someone can post some links to some of the write-ups. I recently helped a friend do one to his CJ-7, he got over 4000rpm.
This setup is the best improvement that you can do for your Jeep's performance, for the money. The Nutter bypass is also a good one if you have the computer controlled stepper motor on the carb. (Just go to "www.google.com", and search for Nutter Bypass Jeep 258) Good luck.
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