Re: Can someone look at this DP lower pic
1.95 is what you want, and that step is normal. No problem.
The one thing you do need is the bearing race for the vertical shaft, It will have to be re-shimmed to the intermediate housing.
A very important procedure, when switching the lower unit on a Volvo outdrive (pre SX). I know a guy who has switched a few SP to DP, just by loosening bolts, take the old lower unit off, on with the new, bolts on and ready to go.
I have tried to convince him that he must use the bearing race that belongs to the lower unit, and mount it in the upper unit with the correct shims, but he won't listen, so I have given up. But I'm not going to purchase an outdrive from him.....