Machine monkey said:I take it you didn't use the paper type seal but some sealer on the diff??
The paper gasket isn't available anymore afaik.
When I first installed the lsd the paper gasket came off intact (stuck to the back cover), so I reused it with blue sealant (although reusing the paper seal is not recommeded by bmw).
But when beadblasting the cover, the paper gasket had to come off obviously, so I now use only the blue sealant. That is also the bmw recommended procedure.
I never had leakage problems.
Welding on the aluminium castings sometime can be done:

This is a weld on the z4 oil filter housing (argon tig weld). I accidently cracked the screw hole because ess supplied the wrong bolt for it (thread too short so the unthreaded part of the bold drove into the threads)...
But it's a bit hit or miss.... especially large structural welds
(the oil filter housing is pretty expensive, so it was well worth the trying)











