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Circlip holding the diff gets welded to the "housing" to prevent the diff from popping out. Only ph1s and early ph2s should have the circlip'd diff, later ones got a bolted one.
Agency Transmission should be able to do this without damaging your box...
Here in Germany you can get different "ratio-cogs" for the 5th. Every gearbox specialist should be able to fit them. Don't think the 5th is that short from standard so wouldn't bother.
When you get your revs to low the car will drive in a less affective rev range thus resulting in less mpg...
You can use 5th of any jc/jb so also from the r5 1.4 boxes which are longer than yours...