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what exactly does the locking diff do, i thought it did as the name sounded and just locked the diff up.
But does low ratio do anything you couldnt do yourself just by being gentle with the throttle ?
Not sure I entirely agree with the above statements of what the locking diff. does in this context, as it depends which differential is being referred to.
On a Discovery/RangeRover, there are three differentials, one in each axle and one in the gearbox between the front and rear drive shafts. The diff-lock option fitted to these vehicles locks the centre diff, the one on the gear box which allows the front axle to rotate more quickly than the rear when going around a corner. Locking this diff essentially locks the front and rear axles together, providing better traction.
However, this still allows the left and right wheels on an axle to spin independently. You can buy proper axle diff locks, referred to as "ARB diff-locks" (no idea what ARB stands for) which typically use compressed air to lock the axle diffs. These are serious bits of kit fitted to the hardcore offroaders, and make the vehicles pretty much unstoppable within reason.
Old Series Landys don't have a diff in the middle, hence why running them in 4wd wears the tyres much more quickly and puts strain on the transmission.
Hope this clears up any confusion.