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Use the sterling if you have it then.. 5.38 is way low enough..
A RC ford chunk converted to PS drop is unnecessary IMHO. I get a stupid amount of travel in the front of my rig and I do not bind with a low pinion, stock D60. If you really want one, then do it. But I feel it is unnecessary and can actually cause limitations in uptravel in low slung rigs..
DC shaft will actually complicate things. On a DC shaft the pinion is supposed to be pointed at the tcase. If you run compound angles (up/down, and side/side) there is no way to actually put the DC shaft in the correct orientation. Use a standard shaft.
There are multiple vehicles that have used an offset driveshaft. LC's actually did for a short peroid of time. If the shaft is well balanced and you do not exceed the total angularity of the joint. You should be just fine.
Most newer stock D60's are 30 spline. Not enough of an upgrade unless you bore the inside of the spindles out (machine shop) to accept 1.5" 35 spline shafts..
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