Re: 700r4 np208 combo into 69
if you plan on using it as a 4x4, go with a th400/np205. If you are just building a 4x4, and may or may not use th 4 wheel, and wont abuse it, go with what you have. The bonus of the overdrive is worth it alone, and you get a lower first gear. Don't let people scare you away from the 700, the early ones had problems, but when updated with later model parts, they are great. The 208 uses a different front driveline than the early stuff, and I am guessing you got it out of a IFS truck, so you will need to find one. Also, it uses a slip yoke rear shaft, but you may be able to use the yoke on your drive shaft, and just shorten it a little.
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