The 225 supposedly put out 105hp@3600 and 180ft-lbs@1600 whereas the diesel makes 125hp@4350 and 185ft-lbs@2400 in stock form. Will the 7.25 hold up or should I go for an 8.8 swap since I have a yard full of explorers and rangers?
Those HP/Torque numbers aren't that much off. If this isn't a racing application, which it sounds like it isn't, I would give it a try. Worst thing that happens is that it breaks and you have to move on to the swap anyway. For normal driving, I suspect it will be just fine.
I have owned many 7 1/4 rear equipped cars and only managed to break one in the past. And all of those cars had a lot of mileage on them.