Don't know about the LSD question, but the 90 engine will work. The engine in 195/2000 came out of a 90 GS-T with over 200,000 miles on it that had an electrical fire in the engine bay. I cleaned it up, dropped it in, and it was fine for the better part of a year, until I stress tested it with AC in July Phoenix rush hour traffic. I actually heard the death rattle when I got it off the road and let it die.
Engine got new rings and rod bearings from Parts Dinosaur and an Autzone MLS headgasket/timing belt. Purrs like a kitten.
No worries.