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that bar helps with the twist of the tcase. On the far end of it, it should have a hole with a bushing it as well that mounts to the skid plate. The reason it is long is to counteract the rotational force of the tcase under load.
Keep it in there, and find you a bushing for the far end. The bushing rides on a custom bushing specific bolt... let me see if i can find some pics.
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