Are there any advantages of the 7M cover over machining a 1HD-T cover? Does the 7M cover have the correct inlet/outlet for 1HD-T?
Inlet/outlet are the same OD for both.
The advantage of a 7MGTE housing over machining a 1HD-T housing is it's already done, one less expense, one less thing for someone to balls up.
Using 1HD-FTE front housing will mean the waste gate actually will fit with no mucking about. Using a 7MGTE housing requires a bit of jiggery pokery to get the wastegate sorted.
It also means you're not opening up the turbo, so no chance of accidental damage to compressor wheel blades.
There's nothing wrong with using the 1HD-FTE front housing. It's just designed for bolt on inlet piping index of push fit hoses.
You could either cut and adapt the stock 1HD-FTE piping, have adapters made to suit hoses, or utilize the 1HD-FTE piping to connect up a FMIC intercooler.
You can have the 1HD-FTE front housing and piping I didn't use.
