TJ drive train in a YJ - After a Year of Work It lives! 4.2 to 4.0

Now that my professional college career is over, I can finally get back on the Jeep.  I finished the speedometer setup and verified with my Garmin with eco-route HD.  The VSS from the 1991 signal is routed through a Dakota Digital and then to the engine computer.  On the speedometer cable, I welded a metal sleeve from Truevalue with the 5/8" internal Tread to the end of the speedometer cable.

I finished the fab work of the transfer case shifter using the original 1988 shifter.  There was a lot of cut and welding and grinding, but was able to selet all gears.  Replaced the electrical switch on the transfer case with a vacuum switch.  Hooked up the vacuum lines and the indicator light illuminates and the front differential input spins with the tires.  Going to get new bolts to connect the Carden Joint to the Transfer case spindle.

I have to replace the exhaust again.  I use the TJ muffler, but a YJ tail pipe with an extension to make up the difference in length.

I started on the rust repair where the front seat belts mount.  I got the driver's belt bolt out, but the passenger side ripped out completely.  Yikes!

Next is to find another Dana 35 rear as the input is leaking again and getting loose.  Any leads are appreciated.
 
So here are the options I've found for rear axles so far...

A  98 XJ Chrysler 8.25 3.07 96K miles $200  Would have to cut spring perches off and relocate?  Same work as installing Explorer axle.

B  90 YJ Dana 35 ???miles $75

C  1991 - 1994 Exploder axles are 3.08.  No 3.07 available?  The 1995 -2000 disk brake setups are not available in 3.07. 

I need the Jeep for this winter so stock (A) maybe the way to go for now.  Maybe (C) if the swap isn't too bad.  Other than spring perch relocate, anything else needed???

I will note that from the powertrain swap I performed, I did have a difficult time installing the rear drive shaft between the the transfer case and rear axle.  I wonder if I need to shorten the driveshaft?  Could this be the root cause to my original axle going bad?

Usually when installing a driveshaft there is plenty of room to insert the driveshaft into the transfer case, position the shaft, and move into the rear axle spindle.  I had to fight to get the drive shaft between the transfer case and rear differential.  Is this normal for YJ's?
 
Do you ever plan to do any of these?

1. Wheel the rig
2. Put Larger tires on
3. Lock it
4. Spring over

If no to all, meaning street driven on stock tires with an open diff, and stock suspension, I would go with the D35. Nice because it just bolts in, and you see how cheap you can get them, even if it does blow.

The 8.8 swap is easy as long as you can weld, but I guess the thing about the drive shaft concerns me. The nose on the 8.8 is about 1/2" longer than the D35, so if it's tight now, it'll be tighter with the 8.8. I don't know how the fit is on a stock YJ.


 
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