Help on shortening a Dana 60 truck housing

I didn't see it mentioned anywhere but what is the original gear ratio on the rear end ? If it is very low like into the 5.00 to 1 or lower, isn't it true that the higher ratios like the 3.54 will not fit the housing?

No that is not true.

If you go below I believe it is 4:30 then you need a different carrier for the ring gear. You still can use the same housing.