i have the opposite problem in my car
i snapped an axle so i threw out the standard s series, atm i have a ae71 auto diff just to keep me going (car is my daily aswell as track car)
and the cables are too long, handbrake doesnt work at all.
not sure of the help of this, but maybe the 86 cables are just too short for a ke/ae, if it was a track car id just get a hydraulic in there. but if its daily get custom cables made up? cant be that much...