The situation: Rear axel shifted about 1/4" due to a 40mph meeting with the curb after tie-rod snapped in a turn. The shop can fix it, but will it EVER drive straight? I has asked 3 times before this **** started "if the frame was bent", no was the reply, now they come back with this BS after replacing the axel shaft. They should have been able to spot the damage before... what'd y'all think, should i keep or part out?

It depends on how much they want to pull the frame. You just have to compare that with what the cars worth to you. It would suck to see another thirdgen parted out but such is life I guess. Maybe you could try getting another estimate from another shop and compare??

Is it just the rear being out of align with the chassis and not the chassis being tweaked ?
If the rear only is out of alignment, check the track bar (panhard). They are just channel steel and bend very easily if nudged against a curb. I've looked at alot of potential daily driver f-bodies that I check the panhard for 1st. If it's bent, it's greeted a curb once before.
A new, adjustable panhard could easily be the cheap fix if it's just the rear tracking off a little. Even if the mount/brace is tweaked a little, the adjustable bar should be able to compensate for that.
If it's the chassis making the car 'crab walk', that's a "is it worth it to you" issue.
Just my opinion though...

If you get it fixed at the shop you should get a big discount because they said it was fine and were obviusly wrong. If you decide not to get it done I would refuse the work that they did and not pay them because it was unneccessary and didn't fix the problem. Had they done a good inspection they would have known what part was out of the tollerance.

Decided to keep the car after a lengthy talk with the owner. We went thru the measurements and the most was 10mm (5mm either way). The front was less and would be tweaked back once the rear was straightened.
I did buy an adj. panhard bar, but the shop claimed this was not enough since the from was off about 5mm.
Another victory was the work is being performed for a greatly discounted price since the damage is minimal and the shop did not do a reading at the start of the process.

Thanks for your replys! I look forward the having her back!!

Later,

awesome! glad to hear you are keeping it and that the shop did the right thing!