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Neil,
Based on my experience driving an xA (you read my review) I think this would be a great mod for FE. However I wonder if using a much taller final drive like a 3.5x would make the car overly sluggish from a standing start due to the 1.5's relative lack of low end torque. Maybe you should test drive an '04 Echo with a 5 speed to get a feel for it before committing to the swap. Also keep in mind that your car is about 300 lbs heavier than the Echo.
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