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I was out in the yard today and found a 97 model XR7 with a 8.8 rear with Code XE. (If I understand thats a 3.27 Locking) 43k miles

Well any how I also want to pick up a 8.8. Rear out of a 97 Mark 8 with Code 34 114k miles.

My question is this, can I take the insides from the XR7 rear and put them in the Mark 8 rear with out any problems?

In turn getting a Locking aluminum setup for my 97 XR7?
 

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Yes.
 

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According to the gears tech article XE is indeed 3.27 Trac-Lok. Another way to tell is to look on the tag attached to one of the bolts on the differential cover. (If the tag is still there.) Look for a "L" in the ratio. Such as "3L27" vs "3 27".
 
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