Martin, I've a 3.6 LSD and it came from an E34 535 Sport, there's plenty of these still being broken and prices are pretty reasonable.
From memory I'm pretty sure that the LSD units in these diffs are made by ZF, they're big and strong, even a `tuned` E34 wouldn't have produced enough power to worry this LSD and as you say, the average 7 series owner doesn't generaly skip maintenace and hammer this car around.
Very basic diff checks;
Following these checks should;
A/ verify if it's got an LSD in it or if it's just an open diff,
B/ allow you to find out what final drive ratio it has,
C/ hopefully stop you buying a very heavy paper weight/desk ornament,
First things first, turn the input (prop shaft) flange, if the output flanges rotate in opposite directions it's an open diff (not LSD) so just walk away.
As far as condition goes, as long as the LSD (and crown wheel and pinion set) has had a good belly full of oil to run in it'll all be good to go, the easiest check here is to take the rear cover off and take a look.
With the rear cover off, what you're focusing on are the crown wheel and pinion (though you can hardly see the pinion gear so go by condition of the crown wheel, they have to run as a matched pair so if one's shot so's the other) and the LSD unit, nothing else really has a value and can be replaced for a couple of quid, unlike the LSD or the crown wheel and pinion.
With the cover off and LSD and crown wheel now visible the first bad sign is metalic debris in the remaining oil or a thick sludge in the bottom of the diff casing, or rust, either probably means trouble, if in doubt, walk away.
If the gear tooth faces of the crown wheel still have a nice good shine (no grey dullness) and you can see no visible wear, sharp edges or anything that just looks plain wrong. If the oil isn't dark brown or black, and plenty comes out all over your feet when you take the cover off, you can be reasonably sure that the diff'll be fine to use.
Check that there's a small amount of play when you start to turn the input (prop shaft) flange before it in turn starts to turn the crown wheel/LSD assembly, what you're feeling is the back lash, if there's too much it's either knackered bearings or worse, the crown wheel and pinion set are worn out (this is why you're looking at the condition of the gear teeth of the crown wheel, to see if any exessive play you may find is just worn bearings or the crown wheel and pinion set that's shot).
When you turn the input flange it should turn nice and smooth, you should hardly feel the transition from the gear tooth pairs meshing to the next as it revolves, any `lumpyness` is a bad sign and your looking for the reason, it could just be bearings.
At this point it's probably worth mentioning that you won't be able to `see` a knackered bearing, not unless part of it's just landed in your lap!
It's not exactly practical at a breakers yard to go through the process of checking the condition and the setting of the LSD, and if you did want to you'll probably find that most breakers yard owners wouldn't be overly helpfull by now, (not after you had to borrow his tools to take the rear cover off, and then spilt oil all over his feet) and will be at the point of "look mate, do want it or don't you?"
Either way, they're very strong and we've never had to sevice one so if the previous signs have been all good the odds are on that it's a good one.
As far as working out the actual diff ratios goes, you'll need to do a count, take some tipex to the breakers with you and do the following.
Mark the input (prop shaft) flange and a put a coresponding mark in line with it on the diff housing main case, then mark an output flange (again with a coresponding mark on the case).
Now simply count the number of revolutions turning the input shaft flange to get one complete revolution of the output flange you've marked, that's the ratio, ie; if you've had to turn the input flange 3.6 revolutions to get one complete revolution of an output flange the ratio is 36:1.
You'll be suprised just how acurate this method can be and if you really want to get it spot on make up a couple of card discs to attach to the flanges or use wire pointers.
The most acurate way is to physicaly count the gear teeth on the pinion (input) shaft and the crown wheel and dived one by the other but that's far from easy when the diff is still assembled and the marking and rotating way will tell you what ratio it is if you know what ratios you're looking for, believe me, you'll not confuse a 3.6 with a 3.9, it's that obvious.
With regard to the Quaife ATB differentials, we sell plenty of these and they're a good product, they need no servicing and are totaly bomb proof, hence the life time waranty.
The POA on the Quaife web site has nothing to do with the price, where you see a POA on the Quaife web site is where they make that particular product for an idividual retailer on an exclusive basis.
The reason there's a POA is because Quaife themselves can not sell you that part but will simply direct you to the retailer that they supply that part to.
If you want to check this out give them a call and ask to buy a Cosworth/TVR T5 gear kit, Quaife will give the a phone number and your next call will most likely have me on the end of the phone
Just out of interest I'll give them a call on Monday and find out who has these ATB from them and then get a price and availabilty, just in case anyones interested. If the rest of the ATB price range is anything to go by I recon' you'll be looking at somewhere around seven hundred pounds (plus the VAT) for this one, but I'll check and find out.
With the OEM BMW LSD units there may be a problem, a couple of weeks back I gave BMW a call to price up a rebuild kit for an LSD from an E30 M3.
These kits nomally have a set of plates and bellville washers in them and as long as the housing and gears are in good servicable conditon are all you'll need to freshen up an LSD that's lost some of it's action.
BMW no longer sevice these LSD units and the kits are no longer available.
On the plus side, they offered us a complete new LSD unit at soemthing like three hundred pounds (plus the VAT) and for a new ZF LSD that's bargin money!
Again, I'll check with BMW on Monday and see how they stand on service kits for the LSDs from the E31 type diffs and get some prices.