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how much space around a sway bar is needed?

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I roughly installed a steeda adjustable sway bar some time ago.  I say roughly because when I was installing it I noticed it was rubbing the sides of my ford racing differential cover on the edges but didn't think it would need much clearancing and decided I would deal with that later.  Well that time is now so I trimmed away the cooling fins that were in the way so there is a hair of space around it but then it got me to thinking of how much space it would need around it while doing its job.  If your not familiar with this set up, you keep the stock sway bar in its location and add brackets to the bottom of the car and it mounts to the axle in addition to the stock sway bar and then has adjustable ends.  Its made to fit nice and tight behind the stock stamped diff cover and left not much room for any billet covers.  


I thought it was a light rub and would only take 15 mins to fix but after hours now of marking the diff/dropping the bar/trimming the cover/raising the bar to repeat it all again.  I have not had to gouge out the cover but I am surprised how much I had to take off at the same time...  I took some pics but you can't really see how much space is around it now to be worth posting.  How much space do I need to leave around it to allow it to do its job?

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