AJMBLAZER - I read Yankee-Tim's article but never understood why you needed the Japanese (rather than Cami built) sidekick diffs. Perhaps it is for the 5.12 ratio? You do need to be careful of the year though (1996-98) because you need 26 splines (not 22). I have no idea where my "new" diff was even made.
My '01 tracker (2 door, 5 speed) has 4.625 gears and I wanted to stay that way since it is basically stock and will be staying that way for now (i have an old range rover for wheeling). I simply ordered a 26 spline sidekick front diff with 4.625 gears from trail tough - this had an aluminum 3rd member of course. I also needed a 26 spline sidekick passenger side cv/axle and made a hybrid shaft with my original - pretty easy to do actually. On the inner axle shaft I simply ground about 1/16" off the diff end and everything lined up perfect (kept the spring clip in place). I think Yankee-Tim replaced the inner shaft with one from the same sidekick - i didn't find this was necessary on my truck - if it is cheap to buy you may want to rather than taking it apart twice.
For your XL7 you want to talk to Brent at trail tough. Most likely you'll want to stick with a steel 3rd member - which was not available on the kick. The gear ratio is up to you as well - what does your truck have?
I added up all the costs and I spent only $20 more converting to the sidekick diffs than replacing the unreliable air pump with a new one from the dealer. The total was $470 which includes the diff, cv/axle, manual hubs, gear oil, cv joint grease, shipping costs, and even gaskets and two nuts and bolts that I broke. I think your cost might be slightly higher since you'll want to stick with the steel 3rd member, but call trail tough to price it out and see what your options are - they are GREAT to deal with.
The install was surprisingly easy except I had two frozen/rusted bolts that didn't want to come out of the differential to chassis mount. A lot of pounding and penetrating oil eventually persuaded them. Two people make life much easier during reassembly and it easily can be done in a day. No special tools required either - only sockets and wrenches.
I finished the install about three weeks ago and have used the 4wd twice - once in the snow and once off-road. It has worked perfectly both times and there are no leaks or anything unusual. The only thing I have to address still is the 4wd indicator light - but that is very minor and I'll get around to that once it warms up around here.
Please post up if you have more questions! But call trail tough to find out what to do about getting a sidekick diff put into a steel 3rd member with your desired ratio. I'm more of a rover nut so i'm not up on all of the suzuki variations...yet!