Yes, it has a lift and 35 inch tires. What do you mean by the wrong size drive shaft? I'm guessing it's a factory drive shaft. It has 5:71 gears in it now. Well, at least in the front; the rear is empty.
We have the factory the original differential complete with the factory 4:10 gears. I'm thinking of getting a new 5:71 ring and pinion and a rebuild kit from 4wheelparts.com and swapping over all the 4:10 stuff to 5:71. The one that is broke has a locker in it, but it's messed up too I believe because we found a small spring in with the metal and crap that was cleaned out of the housing.