Datsun 260z and a 240sx street race

the 240sx hits 118MPH!! and the datsun looses a bumper somewhere along the way.

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260z track car 450 rwhp
via YouTube Capture

Datsun 260Z Racing at 2nd creek raceway in Colorado
2nd Creek Raceway Colorado

260z Rear End
I finally had the time to tear down the rear end, and I found several things that I wasn't expecting. It looks like the car has an open differential (previous owner lied to me, what a shocker!), and it may be on it's last leg. It looks to me like it has a lot of play in it. Everything together makes me consider my options for a new rearend. Should I just re-build this one with an LSD? Should I get a new one? Should I just weld it and call it good? Oh, and on a side note, the PO had the rear end completely full of fluid, no wonder it leaked like it did, all that thick goopy fluid had nowhere to go when those gears started turning. It also appears that it may have had some water in the oil too, I saw what looked like whater beading up on the gears after I got the cover off. I believe that the rear end in the car is an r200, if it is I will likely rebuild or weld it. If it is an r180, I may scrap it in favor of a better option. I have a small block v8 swap in the car already, nothing crazy, but looking at around 350hp adn 350ft lbs of torque.

350 Swapped 260z vs New Camaro
Camaro takes it