Yes our Clutch style Diffs do wear out.
Quick and dirty test to see if it's an LSD is jack it up and turn the drive shaft by hand, if both wheels turn the same way it's an LSD if the turn opposite it's an open diff.
Keep in mind a totally stuffed one of either will do the opposite so it's...
I give the lower section of the tube a hit on it's side with a hammer to deform it slightly then a smear of RTV and tap it back into the block, end of problem.
I'd either buy a new skin from Toyota or find a donor HT at a wrecker and cut ir off at the Pillars take it home and carefully Drill out all the spot welds to remove the skin in tact, repeat on the good car then mig it back in place using all of the original spots as guides/rosettes welds...
87wit: No it's not going to be deleted.
Accept it that Figgie has taken the time to provide a complete answer and move on.
I'm quite happy to be corrected if I'm wrong about something and look at it as furthering my knowledge and will thank someone for educating me.
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