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208 is chain drive, not the strongest in the world but stronger tan the 203. It should hold up if you don't hammer it too hard. Also has an alum case which is lighter but will crack like an egg if you drop it on a rock.
The tranny should take whatever you can throw at it.
As for recommendations I would take that tranny and put a 205 behind it. No chain drive to stretch, no slip yoke, and strong cast iron case. Downside is the comparatively crappy 1.96:1 low range vs the 2.61:1 low range of the 208.
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Plus he'd have to find a 32 spline 205 and the correct adaptor. I found it easier to replace my 465/208 with a complete 465/205 and called it a day.
I personally feel the 203 is a fair bit stronger than the 208. The reduction is provided by a constant mesh gear box rather than a comparitively weak planetary set, plus the cast iron case is a lot more durable. I've never compared chain size, but even if the 203's wasn't larger I'd still give it the nod as far as strength went.
Rene