Is it possible to convert gen 1 differential to gen 2
I know that the subframe is different and also the axels and lca
My main concern is the upper mount point for diff, on gen2 ASD the location is different ?

Don't think there was any "frame" changes on that support area.

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Why do you want to do that? Just curious.

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Are you sure, here you can see a 560SEL rearend and the rear rubber mount is on the left side of diff:
http://schloerb.smugmug.com/gallery/4144397_q4k8W#241895933_jDmeR-A-LB

On my gen1 300SD it's in middle and also on our gen2 500SEC, either this is only problem with ASD diff or a 560SEL difference (as my 300SD is withoud LSD and 500SEC is with LSD).