my suspension is pretty tight.. and sometime on sharp bumps and my foot is on the gas they wheels will lose traction and screech think that would mess up the lsd in the long run? I figure it's sorta like doign a burning out

 

If your shocks are adjustable then soften them up a bit and see how it goes. I dont know if your doing the LSD any harm or not, if the wheels lose traction momentarily when the car goes over bumps then i dont really think you'll do it much harm...