Sounds like you belt came off.
Regular power steering fluid.
Never saw a shock on a sway bar. A shock mounted to the steering linkage would be a steering stabilizer.
Flatblade screwdriver. Would likely be easier if you moved the power steering pump, but its possible without doing that too.
The most common thing on the Cherokee overheating at idle is a fan clutch failure. it may spin but the resistance may be too weak to pull enough air through the radiator.
This is located in the area just behind the serpentine belt and just to the left of the air cleaner housing.
Check your hose for leaks? It might just be how well your hose was put on or a bad washer. Or is it the pump it self?
The Power steering hose is attached with a quick-connect that requires a Quick-Connect removal tool that should be available from you local auto-supply store. You need to know the diameter of the tubing / hose connection. There may be a universal tool for a range of sizes.
check your power steering fluid and also make sure your front dif is lubed up right
1.2 liters
I don't think there is any more than one kind of power steering fluid. I've only ever seen one.
My '96 Cherokee Sport does, so I bet a '98 does.
check the steering stabilizer