yep i just installed a H165 ute diff in my 1000, well a month or two ago. I went through the same train of thought you did Gav, i contemplated getting a bigger diff shortened like the other boys have done but i'm only running an A14 turbo and i want to keep it as light as possible, and i realised that a skyline R31/commodore diff is a heavy lunk of a thing and the H165 is only a bit heavier than the stock diff and relitively easier conversion.

I used a ute diff and it's about 30mm wider on each side, as stated before you need to either get the right offset wheels or just put flare on, i'm going to be using flares. I found out you can't use a shorten a ute diff because after it has been shortened there isn't enough for the splines. The only option would be to shorten a Bluebird H165 diff seeing that they're wider, if you want to go down the shortened H165 but if you want to go down that route you may as well go and get a H190 out of a series 3 bluebird, but they're obvouisly a fair bit heavier again.

I looked into the Alfa LSD that D mentioned but they are far and few in between, i was originally looking for an LSD but i'm hoping to purchase a Topgear builtr LSD for the H165 housing.

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It's funny what a bit of boost can do!!!!