Done.
Milled cast side first, then the long axle side.
Handy to have a big CNC mill sometimes, even if used manually.
Now to clean it up, reinsert the axles, and see how bad the wobble is on each side.
If wobble is still bad I may just make my own bronze bushes on one of the lathes.

Since this is NOT reverse cut it will probably end up in a Spitfire or GT6 based build.
Ratio matches stock for some Spitfires.

I may go ahead and machine down the second center section but would have to buy two short axles for it.
Probably waiting to see how well the first works out.

At this point I would say that finding a Merkur Scorpio or XR4Ti diff is much simpler and lighter with no need of axle adapters.

And it looks like the Scion FRS diff is essentially the same as where the Toyo 4Runner ends up but with twin front mounting ears.
Seems it will accept the Toyo 4Run stubs too.

Visited the Toyota parts department today.
Seals are fairly inexpensive but replacement bearings were quoted at $75.00 each!
I can make them from bearing bronze at about $4.00 in material cost for each.
Looking into the why and how of steel backed versions.
Wondering how big the demand might be?

4x4 guys pay $60 each. I mentioned it earlier in this thread. The ones they list for the clamshell 7.5 also fit the 86-95. It is a little longer than the needle bearing also. Mcmaster car has lots, you may find one close to what you need. .001 clearance with .002 interference fit in housing would work good and last a long time.

The same guy (BlazeN8 0n Pirate 4x4 forum) that does the Toyota centered 4x4 set up also makes his own CV axle shafts out of 1 1/2", .250 wall DOM tubing. 2" long , 1" diameter  stubs after boot flange both sides. Plug welded in 4 spots and tigged. Stock Toyota flange on one side whatever end you want on other side. Tested at 15" travel offroad. Pics:

This is all very interesting. I'm taking notes and will be investigating further into this as I have not yet decided on a rear suspension/axle for my 65 Spitfire project. I'm still getting the body sorted out so I have time to gather some info and parts and tinker a bit.

I have one of the Toy diffs already modified but probably in need of fresh stub-shaft bearings to eliminate play.
I also have an extra Merkur diff for my primary build so may not need the Toy diff.