Yeah, It should work without any problems. My brother's got a 1.25 track with 1.375 studs on his 2000 700 MXZ and he doesn't have any problems (i.e. no scrapes on the cooling fins under the seat). I also talked to the 'Doo reps at the Milwaukee snow show last fall about going to a 2" track on the same sled. They thought it would work without any other modifications. Haven't tried it out yet though.
But dude, the guy has an 1 3/8 track! If he studded it they would have to be 1 1/2 studs to do any good and if they make such a long stud it would flex so bad they would be useless. Your friend with the 1 1/4 track with 1 3/8 studs only leaves 1/8 over the paddle, in my book that is also usless.
I have an 1 1/2 paddle under mine and it only clears the front of the tunnel by 1/4 inch.
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