XRAY - Model racing cars

just wondering if the t3 solid front axle would fit the t2 007

It is the same except the 38T instead of 34. If you want to use it, you will have to change the diff and the belts.

would i need to replace the rear diff also ? would i use the t3 belts ?

yes

The information you've been given so far is incorrect.

Whilst the T3 front sold axle may physically fit between the bulkheads, you will find that the pulley is offset differently to the T2 multi-diff, so the front belt will not line up.

Save your money and don't buy it.

It doesn't line up, but it does still work. I've been using an '08 rear diff in my '07 for an entire season with no issues. I would imagine that the front would work out even better because the belt deflection will be at less of an angle (due to the longer distance). I'm planning on adding the 08+ front spool to my car later this season.
Also note that Xray does make a 34t plastic spool (305184).

Us 007 owners got kind of shafted with the 3.5mm driveshaft caps. We can't properly run them, so we have to either deal with deflected belts or forever break 3.0mm driveshaft caps.