An 8.8 is a great option. Plenty of them around with 3:73 posi and disc brakes. Friend picked on for hid dart. Paid $200 for it. That's only about $1800+ cheaper then a Dana 60. :)
That would buy you a nice bolt in S60. I have about $800-900 in my Dana 60 with new moser 35 spline axles / brakes / bearings and the housing work to put it under an A body.