Chip in ring gear acceptable?
 

http://i65.tinypic.com/m93ygo.jpg

^ What do you guys think, run it or replace it? I have yet to inspect the pinion :(.

Thanks in advance.
Dave P.

The tiny edges and valleys of the chip will create stress risers, weakening that entire tooth. By how much? I dont know. I'd replace it.

always replace

Thanks for the advise guys. I guess if I've cracked it open this far, i might as well replace the parts (i dont want to take the chance of having a larger chunk break off and ruin the new LSD im going to install). Maybe it will give me an opportunity to rethink rear end ratios.

Correct me if im wrong:
Stock ratio 93' manual fd = 4.10

Correct. I really liked DaleClark's method of using the RX8 4.44's. You can get the whole pumpkin for like $200 from a junkyard, plus it comes with a better finned cover that may aid cooling a bit.

It looks like a handling damage on the corner, away from the contact area.

I would use a small grinder bit and smooth out the chip, then check the contact to ensure the contact pattern does clear the chip by a couple mm. (Of course the contact pattern will spread out).

This all assumes you are willing to set up the whole diff and chance it not working out. If that's not your style replace the set.

So, a little update for you guys. I'm attempting to source a used rx8 (4.44) ring and pinion (Dale Clark style). I was quoted $250 for the entire differential assembly, but i may shop around a bit. Appreciate the help guys.

-Dave P.

that is a good price most sets I've seen have been in the 300+

I wouldn't. That's going to be a stress concentration and location where fatigue cracks will propagate.