You had a nuclear meltdown, i thought this was for your 'roommate'? hehe
Sounds to me like its time to upgrade, it should go something like this
you: Hey roommate, lets take this rebuild money and go to the junkyard and see if we cant find a good replacement 8.25 or 8.8 instead.
roommate: Sounds good to me!
you: Oh and lets sell this entire Dana 35 and locker as a package to the next loser.. I mean 'nice guy' who can use it as an upgrade to his dana 35, after he takes it to a driveline shop to have the locker removed. We can use that money to go towards new gears for our new axle.
roommate: Sound even better, and hey thanks for helping me out with this buddy.
you: No problem, glad I could help.
Your ad should look like this;
For Sale:
Dana 35 with ARB air locker and 4.56 gears already installed!!! This is the 27 spline version so it will fit your current housing with no other major upgrades. Use the shafts you already have!! This dana 35 has had some hard use and is in need of a rebuild but the locker has held up great. Just have a professional installer set up the parts in your new housing and your ready to go!!! This it the deal you've been waiting for, our loss is your gain. These ARB lockers can cost over $800 new, and you'll need to buy gears on top of that, but you get the whole package for just $XXX!!! Call XXX-XXX-XXXX. This deal is listed locally as well as other internet sites. It wont last long, DON'T DELAY-CALL NOW!!!