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Your YJ does not have it in the transfer case.
When you put the transfer case into 'neutral' it is not totally freewheeling or in true neutral. The front and rear drive shafts are still connected just like in 4wd.
The only time your YJ front and rear drive shafts are NOT connected is when the transfer case is in 2WD.
This can be proven by putting your YJ up on jack stands and placing the transfer case in neutral.and the transmission in neutral. Turn the rear wheel and the front wheels will turn also.
Why is this even a subject you ask?
This information is for both the manual and automatic transmission.
But it is MUCH more important if you have an automatic transmission, even if you DON'T have a locker.
If you flat tow and you have a "lunchbox locker" like and Aussie Locker or similar, it will make your Jeep travel all over the road, because the drive shaft is engaging the locker by the rear wheels turning the front drive shaft. The input from the front drive shaft is what engages a lunchbox locker.
In the TJ they made a slight modification to the transfer case that solved this problem. They changed the shape of the mode selector plate by putting a big dip in it. The mode selector plate is different and that is all they changed.
The mode selector plate moves a fork in the transfer case that selects 2wd, 4 high, neutral, and 4 low, by sliding a ring along the main output shaft spline.
There is a position in both the TJ and YJ transfer case that the ring does not engage the front drive shaft besides the 2wd position.
This position is called "true neutral".
There are two ways to achieve true neutral in your YJ transfer case.
1. Go buy a mode selector plate from a TJ transfer case.
2. Remove your mode selector plate and grind a large dip in the exact position the TJ plate has it's dip to place the transfer case into true neutral.
When you put the transfer case into 'neutral' it is not totally freewheeling or in true neutral. The front and rear drive shafts are still connected just like in 4wd.
The only time your YJ front and rear drive shafts are NOT connected is when the transfer case is in 2WD.
This can be proven by putting your YJ up on jack stands and placing the transfer case in neutral.and the transmission in neutral. Turn the rear wheel and the front wheels will turn also.
Why is this even a subject you ask?
This information is for both the manual and automatic transmission.
But it is MUCH more important if you have an automatic transmission, even if you DON'T have a locker.
If you flat tow and you have a "lunchbox locker" like and Aussie Locker or similar, it will make your Jeep travel all over the road, because the drive shaft is engaging the locker by the rear wheels turning the front drive shaft. The input from the front drive shaft is what engages a lunchbox locker.
In the TJ they made a slight modification to the transfer case that solved this problem. They changed the shape of the mode selector plate by putting a big dip in it. The mode selector plate is different and that is all they changed.
The mode selector plate moves a fork in the transfer case that selects 2wd, 4 high, neutral, and 4 low, by sliding a ring along the main output shaft spline.
There is a position in both the TJ and YJ transfer case that the ring does not engage the front drive shaft besides the 2wd position.
This position is called "true neutral".
There are two ways to achieve true neutral in your YJ transfer case.
1. Go buy a mode selector plate from a TJ transfer case.
2. Remove your mode selector plate and grind a large dip in the exact position the TJ plate has it's dip to place the transfer case into true neutral.