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Do I have to actually operate and remove only part of the rear guard, or is the whole lot removed leaving the upper hull one continuous level around sides and rear?
Yes, pretty much. There is a plate that remains when the sand shields are off, but it would be easier to make with sheet plastic than to try to use the kit part.
On the inside of the kit part, there is a portion that extends down between the idler/track and the aircleaner. It extends up under the rear end and sort of boxes off the rear sponsons from the open area where the aircleaners and exhaust pipes hang.
Here's a thread on Missing Links about the M4A1 rear end, The first photo shows the piece I am lalking about -- the vertical piece between the idler and air cleaner.
http://www.network54.com/Hide/Forum/thread?forumid=47208&messageid=1061161898 I'd suggest making a template with paper or cardboard, trim it until it fits, then cut two pieces of sheet plastic to mount on the kit. Save the template and you can use it on future Sherman projects.