Thank you everyone for your very helpful advice. I combined what I learned here with the recommendations from the hobby shop and came up with this set-up to handle my new engine and so far it is holding up very well, I really do not let up on the throttle much and everything is still in tact and not bent out of shape. Here is what I ended up doing (budget was a factor):
1. Removed front wheel drive shafts and diff
2. FOC in trans
3. Rear Diff Gear replaced with 3.3 diff gears and rebuilt using losi 30,000 diff oil
4. loosened slipper clutch 1/2 turn out from seated
all parts together cost $11 and about 2 hours of work has resulted, for me at least, a very sturdy and reliable transmission and without the four wheel drive, I swear the handing has improved 100%, perhaps b/c the front wheels are free spinning now.
In any case, if anyone is trying to figure out how to get their trans to hold up so they are not breaking things constanstly, the above steps work great and improve the responsiveness of your truck for only $11!