i just bought a 2001 XLT, and i need some input on improving horsepower and performance, and ideas for softening up the ride a little. advice?

Welcome to the site! I can't help you with the suspension but I can with the extra power. :cool: An air induction kit like the KKM (http://www.kustomz.com/cat2.html) or a K&N FIPK (http://www.knfilters.com/fipk.htm) would be a good start. Next i would recommend a free flowing exhaust like a Borla or Flowmaster. Then I'd follow it up with a Diablo chip or Superchip. I'd also consider switching to synthetic fluids. I gained 2.5mpg with my dual exhaust, K&N, and synthetic oil. More power also!