Rob handled most of the questions (excellent!) -- so I'll just say that your driveshaft is gonna be the tough part... making one work in that limited space is gonna be tough.

I had real issues with mine until I swapped to Toyota transmission and dual transfer cases... now the longer length can handle the big height drop. Turning the knuckles on the axle helps some by getting the pinion closer to in-line with the driveshaft, but you'll still have an ugly angle at the transfer case.

I was just on the line with Tom Wood about this...
<img src="http://www.outdoorwire.com/expo/4x4/tomwoods/featured.gif" alt=" - " />
http://www.outdoorwire.com/expo/4x4/tomwoods/index.htm
... he's sure that he can solve this problem, when you run into it, and since he's just up the road in Ogden, give him a call.

Randii