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Will a turbo 400 from 2 wheel drive work in 4X4 350?

No, a 2WD Turbo 400 transmission will not directly work in a 4x4 350. The 2WD and 4WD versions have different cases, output shafts, and potentially other internal components to accommodate the transfer case. The bolt patterns and overall dimensions won't match up. You'd need a 4WD Turbo 400.