Thanks cajunrebel... I put the transfer case in the stock location. The cross member is lower than the case even in stock configuration. Plenty of room on my adapter plate design to clock it up if I chose to make another one later if it becomes an issue. I agree the 8.8 is a good axle but the 8.8 axles will fall out if you break an axle at the inner spline even with a Torsen diff. Like I stated earlier its too narrow and I already have (2) Dana 44s that came out of late 80's XJs so I'll stick with that. Doing an Explorer disc swap on it too...The motor swap is looking good. Were you able to clock your transfer case up any using that adapter plate? I have a plate for my FSB, but have not yet installed it. I would have to second the recommendation for using an explorer 8.8. It is a solid axle, and the c-clips wouldn't make any difference with a torsen diff. It has no clutches to wear and create clearance for the clips to fall out.