Hi all !
I have a 98 V70XC that I have removed the propeller shaft from because the hanger bearing went bad. Since the shaft was removed, the MPG was better and the acceleration improved. Lately I was replacing the turbo and the cooling line coming from the turbo and the oil seals on the oil return line. The bevel gear housing was in the way of working on any of these components so I removed it. After removing the RT drive shaft there was just five bolts holding it to the trans. After a long wait for parts, I finally got it all back together and it works even better without that bevel gear housing. It's about 50 LBS lighter and not turning the bevel gear any more. WE don't get much snow here in S. Jersey so I don't need AWD.
I also did a double flush of the transmition, first pulling the drain plug and removing any metal filings on the magnet, refilling it then doing a cooling line flush. It seems to shift much better now. Since doing all that work I hear a ringing noise only while backing.
Good luck!!! RK