does any one have pics of smoothing out the lip so I dont take too much
I don't know of any pictures offhand but usually you use the diff cover as reference and try to make it so the housing flows smoothly to the diffcover. You don't want whatever is sliding across the housing to be able to grab the cover and rip it off.
***edit: Now that I think about it, you can't shave the 8.8 completely smooth with that huge ring. You could add a skid though...
Here's Chris Overacker's 8.8". Chris is the original owner of M.O.R.E.
http://www.code4x4.com/projects/axle_88/axle_88.html