Bought a Jun Fac drive shaft on ebay. I will probably use it at a pretty extended position to have the motor mounted up front.

Mocking up again:

Here is how I will make the holders for the front lower arms. It will be more like a link really, the ball end linked to the chassis inside the square tube (I will drill a hole in the square tube to slide a pin in)

Here you can see the bracket I made to be able to mount the watts linkage to the diff housing. Well on actual cars it is on the diff housing, center, but mine is off center so I made the bracket to be centered.

Here is how a watts linkage works. This is as seen from behing the car. The small cross mark in the middle is where the linkage is bolted to the diff assembly. This allows for a vertical movement of the axle (without the lateral swing that happens with a panhard rod)

Compressed suspension:

Lifted suspension:

Here is a small video of my wooden test rig, makes it easier to understand:

http://s194.photobucket.com/user/frederik_Bucket/media/FE117441-D452-4517-94DC-5BE6F239E47D-2577-000005B71941199D.mp4.html

or this animation: