I think alkyulas post explains some, but CorradoPsi's post is also worth a read. I read the first page worth of noob posts and was going to reply with an essay, but after reading the second page I realise I don't have to.
By using thicker or thinner oils in the center diff to alter the front/rear power ratio, you can really change the on-power handling characteristics of your car.
For example, if you have a crazy motor that is forcing your poor 7000 center diff to waste all the power to the balooned front wheels (the end with least traction in this case), you could move up to 10,000 to force more power into the rearend to get more useable power. Or if your rearend is too alive and "happy", you can move down to a thinner oil in the center diff, say 5000, to allow more of the power to go to the front end, and help pull the car predictably around the corners.