Rear axle bearings in 96-98 cobras are the same frickin axle bearings used in all 8.8's since like 1986. They are all 'unpacked' in the sense that they get lube from the gear oil in the rear end.
The 96's had an overheating problem, not necissarily common. Other than that it is second gear synchros in the tranny, not first. You might want to replace the shifter right away with an aftermarket shifter. It will reduce slop in the stock one, which leads to longer synchro and or tranny life in these cars. Other than that I love mine, and it will dust most other production cars, minus vettes, some of the new high boost *** cars etc...
I haven't had any problems with mine, other than what was my fault. I jumped timing due to oil viscosity, and bent the valves. that is fixed now, with new fr500 heads, and high lift cam kit. Mine is for sale by the way, can be seen in the classifieds, and it already has a steeda t/a, and fluidyne radiator, and many other misc. I have heard of the water pump thing, but that is a relatively cheap fix with a particular aftermarket water pump (cant recall the name), and is supposed to give you more top end power for like 300 bucks.