I have recently purchased a 1988 325i e30 which is in need of some love and attention, but i'm unsure of a few things? Is it LSD or not?How do I know?

:banghead:

if the tag starts with the letter "s" it is.

Jack the back end of the car up, put it in neutral and turn one rear tire by hand. If the other rear wheel turns in the same direction, it's limited slip. If it rotates in the opposite direction it is not LSD.