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Good luck with the welded. In theory, it's the same as a 2-way diff. We use one on our Project Craigslist Drift 240 and it does have compromises but for $30, it does make the car much easier to slide. We will actually be taking the hunt of junk to a road course at the end of the year and seeing how it works in that arena. It's much less forgiving than an open diff, obviously, but once you're used to it, it makes the car feel and handle more like a kart.
For DD purposes, yes, it will kill your rear tires quickly and cause more low speed drag, but I'd imagine even a stock 1'er has enough torque to make it negligible.
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