I picked this up for a good price, but now I know why.First I had all the brake components, front and rear replaced.Now its the transfer case not shifting properly,as far as I can tell its the shift module(solenoid)($200.00CDN) on the side of the transfer case.My mech. and I are going to try this next week,hopefully this is the cure.It does have high mileage and I should expect wear and tear but I hope it gives back a little.I'll get back to you if this is the fix.

Update from Oct 19, 2009: Nope! That wasn't it.However we did find out what the problem was, with a little more investigation. It was a combination of 3 different things:#1, A vacuum line had come apart under the hood, drivers corner, next to the firewall.

#2, Replaced transfer case vacuum switch($40.48CDN),#3Front Axle Servo($94.90CDN).It is now working the way it is supposed to.Now I'm going in tomorrow to find out what the clunk is, coming from under the passenger side of the vehicle.Hope it is just the torsion bar talking.( Hope this helps.) See Ya.