[Beaverboy]

Have the drive shaft streched the 4" or so.

How exactly are you going to stretch a drive shaft...just buy a new on in the length you need...and you're going to need 2, aren't you? ....
....or is the protege the same as the 323 GTX awd? With an engine mounted like a FWD car with a single transfer case to the rear?? :?

Yes, exact same drivetrain layout as the 323 GTX awd (same components even). Only cars that start out with a RWD usually have separate transfer cases with 2 driveshafts.

I don't believe the driveshaft will need to be lengthened if it comes out of the protege since the wheelbase should be the same. Only the 323 GTX's driveshaft should need it. There are shops that specialize in adjusting the length of driveshafts.. so having the driveshaft "stretched" isn't such a crazy way to put it.