would it be okay to weld the rear diff if the vehicle is to be used for some road use but lots of offroad?Or would I be better of with an LSD?

a search will return this info, but welding your rear should be fine. I have no experience personally, but you can just remove one rear axle when driving it on the street. (and by can, I mean must.)

Weld it!

Turn corners gradually.

Remove an axle for long term city use.

You'll be fine.

i agree, weld it. you won't regret it lots of traction for offroading but you will need to take out an axle for street use. once you done it a few times its nothing to put in and take out. i welded mine up and it goes alot more places then it did open and without any trouble.