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You didn't mention why the roll back driver or his company is not paying for your new T-case. Seems like if they popped this for you they should be covering their "work".
You hear all the stories about T-case's, there's really nothing wrong with a 208 or a 203 or a 205. 205's are way overated and as a result way over priced. Nothing wrong with a 203, they work great, a little heavy. The 208 is basically a 203 in an aluminum case as are nearly all of today T-cases.
I'd put a 208 back in the truck, as mentioned previously this is the most cost effective solution. I'd stick with the automatic, an sm465 is okay, no issues, it will just be different trouble.
208's are all over the place and usually fairly cheap. I just sold two and two sm465's for $150. All four worked and were in good shape. No real demand for used 203's or 208's around here so they are cheap, bet it's the same where you live and the prices are probably about the same.
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