Video explaining how a differential gear works
youtube.com
youtube.com
http://www.youtube.com/watch?v=DY1pcEtHI_w
Wait till about 20seconds in before you hear the most amazing thing in the history of music.
Boy do I ever get reminded of this every winter. It's a shame that cars that have the option to lock the differential gear are a lot more expensive.
Also, I can't resist posting a link to this video of a working differential built using legos: http://www.youtube.com/watch?v=zOijFK7uh6U
And it's worse than dynamic vs static friction, in cases where you really need it it's likely the wheels are on different surfaces (one in snow, the other on pavement, for example) and then both wheels will have the torque equivalent of being on snow...
Obligatory irony: it was this one: http://www.youtube.com/watch?v=7OCeKMHzEbQ
Reminds me of what used to be my favorite website to kill time but still learn something: http://howstuffworks.com