The reason the rear axle is off set so much is the engine is in the back, facing backwards. The real axle is being driven by the front output on the t-case and the front axle is being driven by the back output. This design has been around for a while one of the first to use it was "Tiny' an air-cooled VW engine powered buggy that took first place in just about all the comp events a few years back. It was driven by Jon the owner of All-Pro. The new axle housings that are under the Buggy look to be Diamond axle housing and are designed and built by Biran at Front Range Offroad. You can learn more about the housings here.
http://www.diamondaxle.com/index.htm
yep, we've had one of those come through the shop. it had a twin turbo alcohol VW with a 2 speed powerglide and an atlas. the axle were custom 9" low pinions turned upside down so it would still drive in the correct direction. it was a comp buggy in colorado and has since been retired as a trail rig. we added some comfortable features.
