After much debate and consulting lots of different sources I decided to put the axles back old axles back in. Moser's tech line said it was not a problem until the splines are twisted 1 full spline from top to bottom. I am about half a spline and probably have been that way since I owned the car after talking to the previous owner. The rear has never made a peep, so I decided not fix what wasn't broken.
I did however, chuck on some new rear Hawk Plus pads, new rotors, new sliders/pins/boots along with some new hard lines to better fit the shape of the Moser housing. A fluid change was also done and I have added a new breather line and a small breather tank that I will mount up under the chassis just to catch any oil mist. When I took the rear out there was only a 1 foot piece of rubber and it had coated the entire rear underbody with an oily residue. Looking to avoid that if possible.
http://www.flickr.com/photos/1qwikbi...7603960575089/
To address the torque arm issue I bought a new mount from SPOHN, new grade 8 hardware and red loctited those babies in, then saftey wired them just to be sure.
http://www.flickr.com/photos/1qwikbi...7603960575089/
Now if the weather holds out I'll get that pig back under the car this weekend and start mounting my new seat.