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Moving the inner pivot bolt for the trailing arm upward raises the roll centre upwards considerably, so the car may handle more like a swing-axle bug if you did that.
May also have a strange effect on the rear toe curve. i.e. Lots of toe change on bumps, and excessive toe-in induced by body roll when cornering. Likewise, straight line stability would probably suffer for the same reasons (ie wind buffeting causing more rear end steering).
Hebster, considering you don't have the frame horns in the way, it may be easier for you to fit the 911 rear suspension onto your type3.
Would move the rear wheels back 57mm but give a smoother & more predictable ride. Plus you'd get the 911 brakes too.
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