67 Fastback getting 8.8 rear

You are absolutely right about that - cutting and welding - That's my major hang-up! with never having welded before - well that and not having a tool that can cleanly cut to shorten the tube. ohhhhh and add to all of this that the local JY want upwards of $350 for an Explorer 8.8 - has completely detracted me for moving forward on doing this. However, this option looks more do-able. however I do have one question, maybe I missed something but did you measure and cut the almost 3" off the end of the tube or from the line you scribed?

Actually I have another question: what were the "PLUG" holes on the differential refilled or replugged with?

The plugs are mig welded after it’s pressed back in. I did the press out and in method for several reasons. It self aligns itself when it’s pressed back in. You don’t have to make a precision cut either because when you press it back in there is at least a 3/16” gap before the tube hits the inside of the carrier and it’s that way from the factory. You can validate that by looking inside at the other axle tube that’s not pressed out. So if your cut is not perfect it’s not a big deal. Weld the plugs and go the extra mile and weld the tube to the carrier housing.