I pulled the xfer case from my sons 00 xj sport trying to diagnose a hellacious noise.
I thought it might be a stretched chain but it is not at all bad. As I had it apart i figured I would try shifting it thru all the gears. when i shift it from 2wd to 4pt all three outputs are locked together, as it should but when i go to 4ft, nothing changes. Should not the center diff be unlocked and the 2 output shafts be able to turn at different speeds?
The plastic slider thingys on the forks look good and forks dont look bent but seems that shifter is not moving the forks far enough to disengage the gear when it is in the detent. The shift plate looks ok as well but could it be the problem?

 

Shifting only works with the case assembled, else the mode forks push the parts around instead of sliding into position.

 

rough assembled it and it still hung up , so took it apart and found the tiniest burr on the edge of the sliding gear. gently filed it off and checked the other teeth, reassembled and seems to have done it.
Also when putting calipers on pay attention to the location of the bleeder. got in troo much of a hurry and slapped on the calipers and could not bleed them. Looked at them a little closer and bleeder was below hose, so swapped them from side to side and in ten minutes brakes were bled. Slap forehead firmly