Axle shaft question

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The holes in the axle flange are NOT the same size for the SAE versus the metric studs. They are an oddball ball size and you won't find the "correct" size drill bit. You can drill them out to the next closest size and it will work. That's what I did back in the day and had no issues. The correct way to do it if you can't get the hole the right size would be to just swap the axles out of a later G body. Plus you get to change the differential fluid which few people ever do.

I used a drill then a reamer to open them up to the proper size
 
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MSC tool is a good source. They aren't super cheap ($40) but it is a precision tool. Pontiac GP is right, the reamer is the right way to do it. You could step up to it with a drill press and a drill but I don't recommend it. Doing it by hand is also risky. The problem is you only have .035 to begin with. The drill will cut crappy unless you are rigidly controlling it.
 
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