if i place the diff under the axle it sits too low and the propshaft and axleshafts dont allign properly. if you want to see a finished project with the same job on the rear axle check this guys site they are very good at this kind of jobs.
http://www.dsg-corrado.de/index.php...mid=46&catid=25

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golf rallye
audi a3 tdi quattro