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also, ive heard locking a dif is pretty sketchy on the road
its not as bad, as the nay sayyers make it out to be! in the dry you will hardly notice it, you may hear some clunks and shudders, but only when parking and real tight corners at low speeds. in the wet you may find alittle understeer on slow off camber corners (roundabouts and what knot), but a good pair of steerers will cure this.. or a few jabs of the hand brake. if your putting in as much counter steer as i think you are, just hold off on the locker for a while and learn a few more steering methods to link..
and yes the 120y sway bar is direct bolt in, use all the 1200 bolts, washers and bushes but use the 2 D shape bushes fron the 120y. just check that you have clearence between the sway bar and sump as it can get a bit tight, i had to massage the lower edge a little for clearence.