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This has been a very instructive post. I really like the idea of replacing the OEM spacer with heavy wall tubing in conjunction with boxing the frame at that location. I've used this technique with square tubing projects and it definitely prevents collapsing due to over tightened bolts.
My '76 F-150 4 X 2 also had cracks in the frame which I welded on both sides after chasing them with a carbide bit to assure max penetration. However, if I tear it down again, I will definitely yank out the OEM brace and work on repairing the frame distortion (collapse) that those OEM spacers seem to encourage. You've identified what is definitely the Achilles' heel of the dent side power steering system. Good show!
This is yet another aftermarket opportunity for someone who could offer a pre-made kit to replace the OEM spacer. Enlarge the old holes, slip this piece in and weld.
Dunno. It's been a few years. Take one of the bolts with you when you get the tubing and ck the ID. Also, make a template of the bolt holes on the outside and inside of the frame so the new holes align with the holes on steering box. It's a bear trying to hold up a forty pound steering box to ck the hole alignment.
Caution. The main fuel line passes through the frame here. In one of the pix above, you can see an aluminum channel with some clamps attached. I put that on the line to protect it while grinding, welding, hammering, etc. Good luck.
I'm glad this thread got reactivated b/c this is a serious matter for many dentsides. When I first got my truck, I could aim my truck but not steer it. After all king pins, bushings, tie rods, red head steering box, rebuilt column, and the frame repair, I can once again relax and steer with one hand.
2X on the caution to protect the fuel line. It's also a good idea while you're in there to inspect the shape of that fuel line closely. In my case I discovered that a PO had crushed the fuel line - probably while wrestling with the steering box. Apparently it is possible to get that line into a position where tightening the box can squash the fuel line - or something.