OK,

I can only guess that this limited slip differential has hydraulic lines going to it to lock it up. I've completely disassembled my wife's old 4matic, and when I got to the differential, I saw this hydraulic line going to it.

What is it for? Does it detect slippage and engage the front wheels, or does it add pressure to the clutch plates and further engage the limited slip of the wheels?

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Those would be for the ASD clutches. ASD includes the warning triangle in the speedo.

Sixto
87 300D

When the 4-M detects wheel slip it locks the t-case. If slip continues it will then additionally lock the rear diff.

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90 300TE 4-M
Turbo 103, T3/T04E 50 trim
T04B cover .60 AR
Stage 3 turbine .63 AR
A2W I/C, 40 LB/HR
MS2E, 60-2 Direct Coil Control
3" Exh, AEM W/B O2
Underdrive Alt. and P/S Pulleys,
Vented Rear Discs, .034 Booster.
3.07 diffs 1st Gear Start

90 300CE 104.980
Milled & ported head, 10.3:1 compression
197° intake cam w/20° advancer
Tuned CIS ECU
4° ignition advance
PCS TCM2000, built 722.6
600W networked suction fan
Sportline sway bars
V8 rear subframe, Quaife ATB 3.06 diff

so that hydraulic line is to lock the differnetial. Any idea how many psi it takes? Since I have pulled the differential and will be offering it for sale I would like to explain why it has hydraulic lines going to it.

Is it still limited slip without the hydraulics, or are the hydraulics needed for it to function?

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