Yeah I have done similar, I cut the tubes out of my old diff and welded all the mounts onto a different centre housing and bearing retainer so two joins on each side. This was for a track car. I would go a different route for a road car. Has stood up to some good abuse for a year, no sings of issues. I did mine in a jig to keep it all striaght.
Do you need to shorten the housing and axles though, 20mm either side could be made up with say FWD wheels (which are very cheap) and some guard flaring I would suggest.
I use a r31 diff which is quotes some where between 1450-1470 on a ke70. I belive the yr22 or ms112 diff are around 1450 ?. This will fit under with the MA61 wheels (I belive they are 6.5") and some good guard flaring.
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