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I have a '98 4x4 SuperCab 4.0/Auto on the driveway with a 7.5; You can count on Ford to be consistent.But to answer your question, any 4.0L Ranger from '93 to about '06 before they changed the drum center hole size, pretty much need to stick to 4.0L trucks since they will be guaranteed to have an 8.8" axle like you have instead of a 7.5"...
That looks normal to me.Here is what it sounds like with the wheels off the ground
YouTube Vid