After reading up on this subject, I'm a bit confused. What is the difference between the two, what's the benefit of each, and which is better to have?

From other discripition of the two, they are made to sound like they do the same thing. What's the deal??

 

A LSD is a Limited slip differential. It is in the rear end (pumpkin) It puts power to both tires instead of just one. If you see a Z that is spinning and only one tire is spinning, it doesn't have a LSD.
VDC is Vehicle Dynamic control. It's an electronic control system that controls traction and sliding. If your rear starts spinning, it reduces the fuel to stop it. It also has something to do with the vehicle in a sideways slide. My Z doesn't have VDC so i haven't really read up on it. Alot of people don't like VDC and disable it.
I think they all should have a VLSD , viscious limited slip diff.

 

hahha no

 

LSD - Physical hardware. Keeps power going to both wheels.
VDC - Computer-program for assisted driving. It detects yaw, or spin in the entire car and cuts throttle and applies brake when necessary to keep the car straight.

 

hmmm...where have you been during the last 10 months?

 

Yeah but if you see a Z with one tire spinning, its a base model without LSD upgrade

and VDC is this program designed for handicaped drivers that doesn't like to concentrate on driving, likes to talk on cellphones while driving, doesnt understand the concept of counter-steering and weight shifting mechanism of rwd vehicles and blames the computer that he crashed.