Hmmm...I dont think they ever put 4.10s in an 8.25
the pinion length on the D35 will be shorter than the 8.25, as will the output shaft length be less on the 94 than the 97. I would keep the axles as-is....I have a feeling you'll run into DS length problems due to the size/length differences in the tranny, TC output shaft, and pinion lengths.
that and the 27 spline 8.25 isnt really any stronger than the D35...
Dana 35 c-clip - 27 spline, 1.18" diameter shafts, 7.58" ring gear, 2.62" axle tube - used 90-01
Chrysler 8.25 - 27 spline, 1.17" diameter shafts, 8.25" ring gear, 3" axle tube - used 91-96