Hey guys, many of you are aware of the project that I've got in the works (it actually started when I bought my 3.0 a couple years ago). I am taking a 3.0 with a low compression rebuild, twin turbos, and sticking it into my 1989 Merkur XR4Ti. Right off the bat I'm hoping to have power levels in the 400-500hp range. Anyway, I have the engine (in pieces), I have a T5 from a V8 Mustang, and I have the car with no drive train. I started by upgrading to a LSD rear end. For this I used a 10 bolt 7.5" carrier from a 1987 Trans Am and modified it to fit inside of the factory Merkur IRS case: Factory XR4Ti open differential on the left, Trans Am LSD on the right. The end bearings are actually the same part# for both carriers if you look in a parts catalog, and the splines on the XR4Ti axle stubs are the same as the splines on the GM axles. If you look VERY carefully you can see that the axle hole in the Ford is a tiny bit bigger, so the axle stubs had to be turned down in order to fit into the GM unit: Here is the LSD with one bearing race removed. It is required, in addition to case grinding, to install it into the case. Due to its larger girth, you are not able to turn it into place with the end bearing retainers removed. Here is the factory XR4Ti ring gear bolted by two bolts to the GM carrier. This photo shows that the holes line up with no modification required: The GM carrier is not quite as long, from bearing to bearing, as the Ford carrier, and it is also designed for a larger pinion gear than the XR4Ti has, so the ring gear landing is too far to the left to allow the gears to make contact. Spacers had to be machined, one to but the ring gear up against the pinion, and another went underneath the bearing race to get the overall height of the carrier correct for the case. After that was all taken care of I found out that the pinion gear rubbed the carrier, the carrier was turned down 17 thousandths: In the photo above you can see the grinding on the left inside of the case to allow the carrier to BARELY slip in. Underneath the ring gear you can see the .550" spacer required to get it over. The silver stripe is where the carrier was turned down for pinion clearance. Last but not least you can see the .362" spacer that contributed to the carrier's overall height to allow it to ride in the bearing retainers as designed. I bolted my Aerostar bellhousing to the block to take measurements for motor mounts. The top of the bell hit the firewall tunnel, so I cut off the strength ridges. Before: After: Unfortunately that did not provide enough clearance, so I got out the sawzall and cut out the tunnel. It is out of my way... for the moment anyway. I have an earlier V8 T5 (got it for $75, so I can afford to break it) so I needed the '94/'95 input shaft, which is approximately .5" longer, which will be required to make up for the thickness of the bellhousing adapter. I just received that, along with a steel front bearing retainer, that not only does not wear out, but it won't flex under torque like the factory aluminum ones do: What may or may not be known by this community is that the SHO crankshaft will accept a 2.3 Ford pilot bearing PERFECTLY! That means that all that will be required as far as that is concerned is that the pilot of the input shaft be turned down from V8 diameter (.668") to 2.3 diameter (.591"). Well that's it for now. I have the driver's side motor mount done, but still working on the passenger side. I'll have more updates as I go.