I have a Carbonetics carbon lsd and it makes clunking noises when I turn. Is this because i don't have the correct oil in it?

 

http://www.carbonetic.net/products/lsdoil.html

Clutch type LSD's need a specific oil per manufacturer. Most clutch types will make noise when cold and low speed sharp corners as well.

 

It could be a mismatch of LSD oil. However, the noise of the carbon LSD is not influenced by the choice of oil as much as the noise of a metal LSD. When did the cranking noise start?? Did it start right after you installed it??

 

You will always get low speed clunking with a clutch LSD, esp. when first driving it for the day.