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I am currently running a RE 3.5 Superride on my XJ and am happy with it. Out of your two choices, I would go with the BDS. This is what the shop sells and is familiar with and BDS has a fantastic warranty.

This is a good resource for flatfender technical information: http://www.thecj2apage.com/forums/general-discussion-area_forum1.html

I always recommend that people use new master install kits when they do a regear. It amazes me that some people choose not to use them to save a few bucks.