You won't have any issues installing the cover with a swaybar on a Dana 70. The "problem" is only on Dana 80 2wd trucks with a swaybar that cause a possible clearance issue because of the added capacity (size) of the cover. The solution is a simple spacer that is installed on the passenger side of the swaybar mount, and relocated the bolts on both sides to give additional clearance. The spacers are available from Hytec.
Kev