[Short R380 to a 200Tdi - clutch release mech]

This is an old reply but did you move the engine forward? The transmission and transfer case appear in the normal location. 

[Adjusting differential selector on LT230T transfer Box]

 I'm doing this with a Series III. Where can you purchase this set up.

[Disco II axel swap to Series III]

Discovery axels are indeed longer. Fender flares might be necessary.

[Disco II axel swap to Series III]

I've read that some people do this for a variety of reasons, improved brake performance and handling improvement. There is some fabrication required for the Disco axels to be mounted to leaf springs. One subject I have not seen discussed is the axel ratio change and if one is using the 2.25L engine do you swap out differential gear ratios back to Series III which I believe is 4.7.1. Now if a larger engine were installed maybe this wouldn't be an issue. Curious as to comments.