I would highly recommend against grinding anything that makes metal on metal contact with another surface. It *could* work fine. Grinding down the teeth is going to make micro grooves in the teeth. These grooves are going to wear into the diffs output shaft grooves. Whether this can lead to premature failure is unknown. You could snap the modified shaft in 3 days. You may take them out 3 years down the road to swap to a kaaz or Cusco unit.
What I can recommend is buying another welded diff for $50 and make sure its done proper & perfect the first time.
The last thing you want is something binding and the diff locking up while your doing 70mph down the highway.
If it's a race car, disregard all warnings above. Blow it up or win the race trying. Because race car.
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