It sounds to me like this jeep has the NP242 "Selec Trac" Transfer case in it, which has a shift pattern of 2WD, 4WD Part Time, 4WD Fulltime (AKA All Wheel Drive), N, 4WD Low. It has the center differential in it. To me itÆs just one more thing to go wrong. Personally I looked long and hard to find my Jeep up here with the 4.0L, AX15 5 speed and the NP231, but then I think I saw ~50 Automatic XJ's for each Manual transmission XJ.

Sean

99 XJ Sport 2 Door, 4.0L, 5 speed, all stock. Daily Driver
79 F150 Standard Cab Short Box, 400ci, NP435, NP205, 35" SSRs