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Can someone explain the functionality of the "Torsen" type differential? I'd like to understand it better.

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how does it work? it just does!

now, HOW does it work, or how does it drive?

with no load on the tires, it acts like an open diff.

in fact, I was scared when I first put one in, because when the truck was up in the air, I spun a wheel and noticed the opposite wheel spun backwards. I thought "oh crap, something is wrong with it...limited slips aren't supposed to do that!"

Turns out it's normal.

basically the torsen type can tell when both tires have good traction, and it locks up to deliver equal torque to both wheels. once the gears "slide into place" or whatever happens, it locks up and nothing slips, it becomes like a spool, zero slip! when torque is neutral the gears retract back into position, and it acts like an open diff.

on wet roads, where traction is limited or non-existent, mine acted like an open diff, and would not send the back end out sideways around corners, yet I could feel one wheel spinning.