The Detroit Truetrac is becoming the differential of choice. You can get it for a good price on ebay: GM 8.5" CHEVY 10 BOLT 8.6 DETROIT TRUETRAC POSI 913A481:eBay Motors (item 330335502533 end time Jun-14-09 09:19:01 PDT)
If you get it, make sure you run regular gear oil not synthetic. The synthetic has given a few people lock up problems.

