Just a few additional thoughts on the 8.8 swap. If you're going to run 31s, it's not really necessary to upgrade. Bigger tires put more stress on the axle and require deeper gearing. Advantages of 8.8 from Explorer over the D35:
1) Stronger tubes
2) Deeper gearing available
3) Disk brakes
4) Stronger shafts (31 spline)
5) Many have limited slip from the factory (e.g., 3LS73 axle code = 3.73 ratio with limited slip)
6) Larger ring gear provides more tooth contact (stronger)
Available Super88 kit from Superior Axle offers c-clip elimination, chromoly shafts, bigger wheel bearings (Ford 9" size), stock width
Good lockers (Detroit, ARB, etc.) are available and recommended as the stock carrier is one of the weak links