Personally i prefer the 02-05's more then the later models. But, in the 02-03 models there are supposedly engine problems that are common, but i've had bolth a 02 and an 03 and they never had any major problems, besides the themostat getting stuck in my 03 and busting open - spilling coolant everywhere.
On the Eddie Bauer vs Limited question, these two models are nearly the same, it was just that the Eddie Bauer was supposed to have more of an offread feel, so it got an Arizona beige trim color, while the limited got trim painted the same color as the rest of the body.
Towing - With a tow pkg v8 explorer, your good to tow up to 7700 or 7800 lbs (cant remember which), a v6 tow pkg is 5200 for 4wd, 5800 2wd. v6&v8 w/o tow packages aren't rated for more then 2800 due to a lower gearing and a smaller hitch.
The reliability of v6 vs. the v8 is pretty much the same, the 02-03 v6's were know to have timing chain issues though i think.
Just a couple notes.
SOHC v6 4.0 liter - 210 hp 250 tq
DOHC v8 4.6 liter - 239 hp 260(?) tq
4x4 Auto - Detects slippage and enables 4x4 until vehicle is stable again.
4x4 High - Engages 4x4 while staying in the normal gearing of the vehicle.
4x4 Low - Engages 4x4 and drops into a low gear ratio of aprox. 2:1, reduces speed, adds torque.
If anyone finds any errors please say what the correct info is.