4bangn, the 7.5" ring rearend you have will eventually break with 450hp v8. especially if you get on it alot. they put it in f-bodies, but it's only made to take about 300hp or so.
try to find one out of a zr2. those are 8.5 ring. not sure of the ratio, but it will bolt up. otherwise, you can put anything you want in there with enough work and/or $$'s.
sign_in_name, you are basically correct, except that limited slip transfers power to the wheel with the MOST traction, not the least. if it was otherwise, the tire with no traction would just spin 'till it gives up the ghost, and you would be stuck in that mudhole. i'm sure you knew that, and just wrote it backwards, but for those others reading, it's power to traction, not power to slippage. the best advantage of a limited slip over a full time locker is cornering. when you take a corner, the outer wheel takes more revolutions to get around the bend. you really don't need positraction (limited slip) for regular street driving, unless you tend to have a heavy foot, and spin one wheel, or you just like the look of a true burnout. one wheel burnouts dont count.
"never attribute to malice that which can be easily explained by stupidity"-anon-
click if you hate pidgeons :
http://perso.wanadoo.fr/chuu/Trucs/Final_Bird.mpg