I'm a little lost here. I have a 95 YJ and I'm looking into either a lock for the rear wheels or a Limited slip, I know that the Dana rear I currently had would not be able to handle a lock, and I was trying to either put a D44 or an 8.8 in I found both of these on Craigslist but am also not sure of what gear ratios I need. I use my YJ mostly as a daily driving but would like to be able to use it in deep snow and mud. What are the pros and cons of each the locking and LSD and which would be better for my purposes? I also plan on putting a lift on it later this year if it affects the rear I need.
Fill in your profile a bit more, so we can make good suggestions. What size tire are you running? What size tire do you eventually want to run? A Dana 35 has a bad reputation, but it can be fine locked on smaller tires, with a cautious driver.
As for the comparison between LSD and a Locker, driving with a full-time locker on the snow (as in daily driving) is an adventure, to put it mildly. If I didn't use my Jeep for off-roading very much, I'd prefer the LSD. But a locker is sooooo much better for actual off-roading applications. If you're close to stock tire size and not planning on going bigger soon, you could find a used lunchbox locker and throw it in: you wouldn't be out more than about $200, all told.
Might as well leave it open if you are going off road. Once you lift a tire with LSD you aren't going anywhere.
"Off road" is relative. Some just need more traction in the gravel and some actually need it in the rocks. I have seen some rigs flip before they even lifted a tire so suspension travel is relative as well. With a 8.8 that has drum brakes, you can apply the ebrake to get a little more out of the LSD to get you over an obstacle. It's not that big of a deal. Conversely, a lunchbox locker on a street jeep may cause some issues when weather gets a little hairy.
OP, weigh one against another in the meantime. But you need to take a step back and look at the entire picture not just the part being replaced. That includes future modifications as well.
Ive had to pull cable more times than I can remember for people counting on the ole e-brake and LSD trick. You lift a tire in the rocks, its over. But for mud and snow, where you plan on using your jeep the most, a LSD will probably serve you well. The aussies work great and are a good buy for the dana 30 but any auto locker is going to be an adventure in snow.
Your limited slip differential sucks.