I've been told that a wrx LSD r160 diff will fit in my 280z, is this true? Or has anyone ever tried this?, I'm not looking for it to handle anything more than low 200 hp. Just wanna have both rear wheels spinning .

Google search datsun STI diff and read on. Hybridz has a lot of info.

I have a STI r180 in my car and it does fit, but you have to adapt axles

I suspect the R160 will require some type of adapters, similar to the R180. If this is true you might as well use the R180 as it is likely easier to find and the necessary axles are in stock at Wolf Creek Racing: Tranny & Rear Diff Parts. With these axles the R180 is a bolt-in operation.

Since you have a 280Z you should check to be sure it does not have a R200, some do. The R180 (and R160) will not simply bolt in as a substitute for the R200.

Actually - in the 90's Subaru used a LSD 160 in some models that will bolt right into our cars- no mods- but they are very hard to find

I can recommend the STI R180 swap. It is quite easy, but not really that cheap.