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My question what are some things to look out for or any problems I may come across really just wanna see what is be getting into? Thanks for replays in advance.
You'll need to start with a 205 with a 27 spline input from behind a t350. You'll also need to get a 2" (iirc) spacer to go between the transmission and t-case adapter, or swap in a shorter output shaft in the transmission. If it has an electric speedo you'll need to figure out a VSS for the gauge and ECM also.
You'll also need to figure out a new crossmember and driveshafts.
I am in the process of making that conversion. Purchased an adapter from ORD. Previously had a 400 in the truck. The 700R came from PATC/700R rapter. The 205 has a yoke front and rear. I do not like the slip joint in the rear. New drive lines will be necessary.
Converting a 205 to a VSS is pretty simple. A standard oil dipstick is very close to the clearance you need between the new 241 reluctor wheel and the VSS sensor. A drill, grinder, tap and the 241 reluctor wheel/VSS sensor is all you really need.