When i bought the car my mate told me that there was a LSD on the car which there was however as the ratio was totally wrong i took it off and found that when you turned the input flange you could grip the output flange whilst still being able to turn the input flange. So at this point i thought that 1 of 2 things
1: the LSD is blown
2: its actually a open diff
So as the diff was a 168mm small case LSD, i managed to find a e36 318tds compact open diff that had a 2.65 ratio which was virtually perfect, now i just needed to sort out the LSD so i stripped down the LSD only to find that it had second set of clutch and friction plates in order to ram extra clutch and friction plates the LSD top cap has to be lathed back. in my case it had been lathed a touch too much had to get a custom spacer to make up what had been lathed to much and happy days, bolted the diesel crown wheel to the LSD and dropped it off to get the backlash set up. This all made sense in the end as my mate said to get that lsd to lock up he had to rev the tits off that 318is engine and then pop the clutch.
330d LSD 210mm
318TDS LSD 168mm