Adding to what has already been said, the part must have been available from the factory on that year car, and you must have all parts of the option package it came with in order to run it legally. In this case, the factory 94-97 Torsen car is not (currently) legal for STS, and the VLSD was not available in 94-97.
Most top drivers feel that the lower HP 1.6 cars are still better for STS due to both the VLSD and the 4.30 final drive. I'm not sure how many people have developed a 1.8 car for STS, so it may not be a forgone conclusion. I ran a 96 open-diff car for a short time a few seasons ago with some success, but only at the local level, and not against any of the National-caliber cars that are common on the DFW scene today.