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I beleive the unit I have is a 1996 XJS V12 Diff with 2.88 gears. I have a set of 3.08 gears (the proper setup for my MGB V8 given the tranny) and I want to swap them out. My first question is does the carrier have to be changed to use the 3.08 gears? The unit is limited slip BTW ( all of them might be, like I said I am a newb). Second question is what do builders typically do to limit the axle travel? It seems that the axles could potentially drop enough to actually bind the u joints if not controlled (maybe I am overthinking this and it would only be an issue if I was sending the car airborne on a regular basis, but I am curious). And thirdly, I appreciate any advise you can provide on how to successfully work this diff into my build. A shop has already shortened the overall width to fit, but I am wondering what the best way to attach it to the MGB unibody is. Any advice on that will be appreciated. 
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The Jag unit is a Dana 44, 8.5 inch ring gear. If the 3.08 setup is also for a Dana 44, you'll be in good shape. A specialized axle shop should be able to do the swap and proper setup for about $300.
The carrier size doesn't change until you get between 3.73 and 4.11. I don't remember the size exactly, I just know it is between the two.
Bump stops are tyically used to keep the shocks from bottoming out for a fully compressed suspension. Shock length "should" limit the extended travel. However, (I think) with some 'vette rears, breakage has been known to happen when power is applied and the rear suspension is fully extended while on a lift. I think this is a rarity and has something to do with the way power is applied and the limited slip distributes power.
Research the unit Daze placed in his Mustang. As a uni-body, some fab work was needed but overall this was pretty straight forward.
Good luck with your project!
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Copied this from the early IRS threads;
- NOTE 04/09/10 It was recently brought to my attention by Sedat Yalcin that the above information only applies to Dana 44 carriers. If you are using the original Jaguar carrier you need to be aware of three different carriers. The 2.88:1 carrier will only work with 2.88:1 ring and pinion. If you have a 2.88:1 carrier and want a lower ratio you must change the carrier or buy a custom "THICK" gear. After getting this information I confirmed it by contacting Mike at CWI and he added that Jaguar made there break between low and midrange ratio at 3.54:1 and 3.76:1. The important thing to keep in mind when deciding weather you need the parts set up for high or low ratios (excluding the 2.88:1) is not weather the carrier is Jaguar or Dana 44 but weather the ring and pinion are Jaguar or Dana 44. If the ring and pinion is Jaguar, regardless of weather the carrier is Jaguar or Dana the break in ratios is between 3.54:1 and 3.76:1. But in reverse if the ring and pinion is Dana, regardless of weather the carrier is Jaguar or Dana the break in ratios is between 3.73:1 and 3.92:1.
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From Wikipedia, the ranges for Dana 44 carrier sizes are:
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