Crap, apparently I can't type worth shit. It is a 3.23 as you pointed out.
effective HP is defined here
http://www.merriam-webster.com/dicti...e%20horsepower
Technically increasing the diff ratio increases torque at the wheels, however
Since HP = (torque * rpm)/5252 if you increase torque then you increase HP
Thanks for catching my typos
Dave