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It will fit fine. Not sure on speeds though. Faster then the Stinger.

I've never broken a belt with lots of abuse from a low turn brushed motor. The diffs are a different story. You will need to swap to Nitro 4-Tec diffs to handle the power.

I just realized Traxxas makes a set:

http://www3.towerhobbies.com/cgi-bin/WTI0095P?FVSEARCH=4336X&search=Go

Blue, if any. The steel insert that is in the stock knuckle has a tendency to strip out and spin. Loctite will only make it happen sooner. I suggest getting a set of aluminum knuckles to avoid the...

Yup, that's all that would be needed.

They are slightly too long and will bind. You can trim/sand them a bit though to make them fit, but you might as well get electric 4-Tec axles instead.

Ya, didn't think about that possibility. Mine was full of dirt when I first got it (used) as well actually.

The diff sounds to be alright. It should/will be a little tight. Check the belt and report back.

For reference, here is what the belts should look like:
...

Sounds like maybe there are teeth missing or they are worn and skipping. Could be the teeth on the diff, but the belt is more likely. What does it look like?

Could also be that the diff is...

I'm running 35 weight and Losi Green springs with Jato arms and can't image why you would want to go any stiffer. If your shocks are bled correctly and are not leaking, you don't need super stiff...

Traxxas hasn't stated what the Velineon is I'm pretty sure, but I'd guess somewhere around a 10 or 12 turn.

Yes, the NOVAK system will bolt in with no mods. The instruction manual for it should ...

Velineon is about $165:

http://www3.towerhobbies.com/cgi-bin/wti0001p?&I=LXSDB8&P=ML

Honestly, I would go with a NOVAK BL setup like this:
...

How much are you willing to spend? Having a price range would make helping you select a motor/controller combo easier.

Depends on the speed controller you get and what you want to do with the car. The lower the turns, the high RPM (faster), but also more maintenance. I.E. - Cutting the comm and changing brushes.

Uh, I was born here, so ya. :p

Should be getting more video at some point outside where the REAL drifting happens.

The VXL would be MUCH faster then the stock brushed motor and speed controller. The problem is, the diffs really need upgrading to be able to handle the extra a power, so that adds cost.

Take a...

I was bored, so I decided to do some drifting around a cone inside (it's snowing outside).

http://www.youtube.com/watch?v=XsxcrwmEHgQ

Here are a few pictures as well:...

Much harder and more complicated then just putting a brushless in the 4-Tec. All you really need to do is upgrade he differentials and maybe the axles. Bearings would be a good choice too and...

I don't think there is anyone that makes a 48 pitch spur gear anyway. Not that will fit the 4-Tec anyways. There are Kevlar ones though.

Try leaning the engine up about 1/8 of a turn.

Carbon fiber isn't that bad. No worse then fiberglass or even woodworking. Just try and keep the dust under control and wear a face mask if you are worried.

I also run a Nitro 4-Tec fiberglass...

I guess it is a matter of opinion, but I haven't stripped out ANY of my RC Screwz screws in the 3 years I've been using them.

You might want to check out my old 4-Tec website for the nitro arm conversion. See here:

www.geocities.com/the_tec_alliance

If you have the tools to make one, check out www.dragonplate.com. They sell a carbon fiber/ plywood veneer sheet that is stiffer then carbon and cheaper too.

After waiting forever for the Traxxas...

Paper tends to be a bit to thick for the 48 pitch gears that are in the 4-Tec. Maybe try a piece of tissue paper.

Really though, it's not hard to set it by "feel". You want just enough clearance...