You can fit an early Toyoda T-series diff head, including the LSD unit, in a Datsun H165 housing. T-series diff to 1985 is what is needed. 1985-1987 GTS diff is larger.
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Overview
Only the early ae86 83-early85 zenki diffs 24mm axles and same splines as h165 axles.
Grind out center section from 175mm to 177mm to accept the ae86 carrier.
(May need to relive part of the internal step where housing meets the rear bowl to allow ae86 towers to clear fully.
Related a dent to clear bearing retaining bolt in rear bowl just to the outer side and above rear filler plug (approx 5mm with a ball pein Hamner).
Insert carrier and then axles to check for binding and straightness.
Center punch the carrier holes transfering the spot to drill then tap on the housing
Re-drill H165 housing for AE86 centre section as now 10 bolts not 8 (9 bolts approx 35 long and one approx 85mm)
Use driveshaft adapter ring & machine AE86 companion to match. That's it.
AE86 DX & SR-5 6.38 ring gear S292: 4.10 2-pinion (Automatic) USA S314: 3.91 4-pinion (5-speed) USA
AE86 GT-S 6.7" ring gear T282: Open T283: optional LSD (USA Only) 4.30 2-pinion T234: optional LSD
Pitch Adapter
propeller shaft pitch adapter
AE86 Flange 46mm(?) spigot 78mm PCD
B120 driveshaft 45 x 54 mm H165 pattern ~38mm spigot adapter: 12cm(?) thick
Modified Flange Type
Drill 2nd pattern on AE86 flange.
AE86 flange is 78mm pcd (~55mm square)
Drilled for smaller H165 pattern:
Bolt-Through Spacer Type
Requires more complicated spacer machining
Custom make one, similar to this:
Threaded Adapter
AE86 side, 78mm PCD, spigot hole ~46mm
Sunny Truck tailshaft side, 45 x 54 mm pattern, spigot ~38mm O.D.
rally1200 Diff Conversion
Club member rally1200 was going to fit a Sprinter diff centre in the H165 housing. But the housing was bent, so he converted the Sprinter axle assembly to fit the 1200.