I'm looking to do a 8.8 swap from a 1980 throw 1997 mustang will the axle house need to be cut do

You would be better off getting an 8.8 from a Ford Explorer, up to around 2001 model year. They come with disc brakes, usually a 3.73 or 4.10 gear, 31 spline axles and traction lok diff. (Fordspeak for Suregrip). There are threads on the site detailing what is involved, IIRC you want to get 2 right side axles, and cut the left side tube to get your correct length. Mustangs did not get the 8.8 until the 1985 model 5.0, and they used drum brakes and 28 spline axles with 3.08 or 3.27 gears, at least until the mid 90s.