If you flipped an amc20 over you could solve that problem.
Yes 06H3...thats exactly it. Flip it up-side-down so the ring gear is on the other side of the pinion. I think that's what ATV was trying to tell me but, I wasn't gettin what he was pitchin. Flipping it will keep the input rotation (on the yoke) in the same direction, while changing the output rotation (at the carrier) to run backwards. In fact...the more I look at it, I think that's what AM General did in the first place. This seems to make sense with the fact that the old-school AMC-20 ring & pinions still fit it...they didn't invent a HP version, they flipped it! I'm betting you could flip it back over, Jeep style and it would have zero effect on the oiling. After all, it would be returned to the original low-pinion arrangement and gravity would do the rest. Pop in some 4.88s and some custom half-shafts, and use the rest of the stock H3 stuff. Mounting it looks to be much easier since it already has plenty of threaded holes all over it. Of course, you would have to extend the driver-side output via a shaft & tube somehow...not sure how to do that. But, the unit looks to be small enough to fit up in the available space. Oh yeah...you might have to drill & tap a new drain plug (on the bottom), and convert the old one (on top) to a vent - LOL.
The AMC-20 is hardly anything bad-ass...but the H1 version has all the IFS stuff pre-designed into it: Flanged output shafts, seals, mounting points, etc. Between the Hummer parts and Jeep parts...there seems to be plenty of diff and gearing options. Like most diffs...the weak link is probably the spiders and axle splines, and because you are using the Hummer output shafts and carrier...its probably been given some tweeks compared to the 60s-era internals of the original Jeep AMC-20. I'm sure you can expect some strength "de-rating" by running it directly to the wheels (without an additional reduction from the portals)...but it can't be any worse than the AAM-7!
In regards to all the other b.s. that this topic always brings up:
I'm just looking to put a $400 H1 IFS pumpkin into an H3, period. I don't care about H1s, H1 suspension, inboard brakes, portal gearing, tube-chassis's, high-end shops, Dynatrac, or any of these other ridiculously expensive ideas. CHEAP people. CHEAP! I'm talking under $2500...DIY...used parts...etc. Good ole grass-roots beergineering, type stuff. Around here I have a four-digit limit ($xxxx) on any and all 4x4 mods. Any more than that and I need to get my head examined.