We use welded up rear diffs in our dirt track cars, but we have to use a staggered set of tires to get it to roll through the corners easier, but the compromise is that is also has to go straight too. Try pushing a car with the rear welded up! It is almost impossible, especially trying to turn it and push at the same time. For drifting and driving in the mud all the time it is worth welding. Street driving, no way!
Russ
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