You will have major problems fitting a sbc into a 4x4 chassis, the front axle assembly makes it near impossible for the oil pan to clear. The stock LUV rear will stand up to normal v8 power up to a point- it is about the same strength as the GM 7.625" 10-bolt found in Camaro's & the like and in S-10 4x4 fronts. When you add low range to the v8 it becomes even less suitable, & the bigger the tires the more likely to fail. However, the rear is not the big problem, it's the front differential. Not only is it in the way of the engine but it is smaller and weaker than the rear differential and is even more likely fail with v8 power. If you go with the stock 4x4 driveline you have to accept it's limitations. As for the t-case, before the mid '80's most 4x4's had passenger-side drop, so there are numerous t-cases that will bolt directly to a Turbo 350 that have the output on the proper side. If you are set on a v8 4x4 LUV the best way to go is start with a 4x2 chassis, add a solid axle front, matching rear if you want, and the tranny/t-case of choice. You should be able to sell a usable 4x4 for more than a 4x2 costs, there is less to the front suspension to cut out & toss in a 4x2 & the engine compartment has the same room as after the front 4x4 diffy is removed, so it will be easier & cheaper to start with a 4x2 than modify a 4x4.
_________________ '78 Chevy LUV,1.9,4sp,headers,31's,SAS Dana 30,Dana 20,SOA rear w/Aussie Locker, rough body, bought new 12/4/78. '87 Trooper,2.3,5sp,headers,31's,ball joint flip & spacer,Aussie Locker rear,Superwinch hubs,brush guard w/5.5K winch,more to come.
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