I have a 95 Montero SR 3.5, auto. On my transfer case knob I have 2H, 4H, 4HLc and 4LLc. I have a OEM rear locker. Ok, on the dash, the drivetrain layout( 4 wheels, axles, driveshafts and center diff - that lights up) the center diff light is on, steady( not blinking) and has been since I got it. What does that mean? Also, when I try to put it in 2H or 4H (every variation of neutral/drive and forward/reverse) it makes a grinding noise, so I just put it back in 4HLc. Any help would be appreciated!

Unfortunately, someone more experienced than I is going to have to help you here. All I can say is that to me it sounds like the center differential is jammed locked. Why it would get stuck, I don't know, but I have never had any grinding at all, ever. Also, that's not good. If you really are running around with the center locked up, you'll be burning more fuel than necessary and I think the book says it is bad to be running more than 40 in this way (yes, I know 4H unlocked can be shifted in and out of up to 62mph). Basically what I am saying is BUMP, someone step in here and help! <img src="/forums/images/graemlins/scared.gif" alt="" />

It makes no sense that it would grind gears if you have the transmission in nuetral since nothing should be turning in the transfer case while in nuetral...wierd. What happens when the engine is shut off, car is parked and you shisft the tcase into 2H then re-start after tcase is in the 2H position?

If the truck is stopped, the rear part of the tcase should be stopped, too. If the tranny is in P, the input shaft stuff should be locked stopped, too. No grinding is then posssible, but it may be hard to get the tcase shifter to go into 4lo due to gear engagement misalignment. A slight roll should line it up. If the engine is stopped, it should shift into lo range or any position fairly easy, if the truck is allowed to roll slightly. The shift from 4hi to 4hiL is only a syncro engagement.

I think there's a special goo in the tcase for the activetrac, but I'm not sure. Seem to remember that the wrong goo will cause problems. May be confusing it with a quadratrac too, so beware this particular advice. I was wrong once, and it could happen again...

It wasnt making a grinding noise in Neutral, it was when I put it back in Drive. But its fixed now, I dont know what the problem was, but its fine now! Thanks for the help guys.

grinding going into drive means the tcase gears were not engaged correctly first.