Aaron, congrats on your e.t.'s - another strong running Kelley El Camino that's for sure!
Most people do not stop to think about the power consumed by drivetrain pieces that much. Sure, they know a TH400 takes more to power than a TH350 - fewer still think about the differential a consumer of power (now if we could only do something about all the people who bought inefficient *performance* torque converters that are seriously wasting their cars performance potential). I might not have guessed that there were ways to prep the same kind of differential and gain over 20 rear wheel hp.
The test car in the Circle Track magazine (December issue) article was a Late Model Modified, they use a Halibrand style quick change differential - something that used to be popular in early street/strip cars that allow easy gear ratio changes with the removal of only a rear cover plate. The featured differential came from
http://www.tigerrearend.com - probably a lot more money than you would want to spend. However, the idea of using low friction bearings, seals, and polishing the gear surfaces are all tricks that you can use.
Aarron, your not thinking of a 9" in your '86 are you? All things being equal that swap would slow you down - I do believe the 9" has even more friction area than the Tiger differential, a 9" has way more friction surface area than any of the popular GM differentials. I've also noticed that even a lot of the Ford racers have abandoned the 9" and gone to the Ford 8.8" (which is like a GM 12 bolt) strictly based on getting the most power to the ground.
*Tip* Circle Track magazine has a lot of technical articles that we can apply to our cars.
Thomas