Didn't get a chance for a nice write-up.
A higher rear differential setting keeps the rear wheels a closer speeds than a lower setting. Coming into a turn, the decel setting locks the wheels together, which makes the car resist turning. Depending on other settings, this car cause an infuriating corner-entry push, or is can work miracles to stabilize a car that is twitchy under braking. On corner exit, a higher accel setting will cause the two wheels to spin at similar rates. This forces more power to the outside wheel. (High-powered, open differential cars are notorious for performing one wheel burnouts, where the inside wheel loses traction, and then all the power goes to that wheel, as it is the path of least resistance. While smoke looks good, this is obviously not the fastest way out of a turn. It is also inherently less cool than powered sliding, hence the popularity of LSD among the drift crowd.) For a road racer, a high LSD lock % will allow more power to be put down, at the expense of overall traction. A car with a low LSD setting should be easier to drive than a car with a high LSD setting. (There are 2 main reasons that most modern cars use open differentials: 1) They're cheaper, and 2) they don't cause oversteer.)
Now, what LSD settings are best is dependent on a number of factors, including torque, corner radius, tire slip angle, suspension settings, and personal preference.
I'll write more later, but I need to hit the hay - first day of school tomorrow
