Originally Posted by MetroMPG
Good idea - could just hack a transaxle for a compact diff?
or take one from any small rwd/awd vehicle with workable output flanges, they're pretty compact already and setup to go in in a 'T' configuration. I would think that would take up the least amount of precious passenger compartment.
Considering that others are suggesting making a custom-built oil bath for the chain drive, I'd think the diff starts looking better.