he used a super distortion in the bridge and had a tune-o-matic, he pretty much didn't use anything else on the jag so thats about all you'll need to do, i'd reccomend going for a jb jr, it'll sound close enough to the kurtz and you won't have to cut up the guitar.
the tune-o-matic will completely transform the sound of the guitar, and the action won't be adjustable (though it's not too high for comfort). i'd reccomend a large post (like epiphone) TOM as you won't have to wrap electrical tape around the posts like on the modern-style TOMs (pretty piss-poor method of doing a 'mod' if you ask me).
so while you can still get a fender neck singlecoil sound and the guitar will be more versatile in a 'rock' sense, i hope you don't like it the way it is, because it's not going to be like that anymore.
please bugger off and read the stickys, they'll give you more help.