I was putting a bigger motor & tranny in my xj and managed to drop them now there in and I noticed I cant turn the output shaft unless its in 4wd or the TC is in neutral. Is that normal or did I break something

 

Turn it over from the balancer and see if it binds up.if it does not you should be ok. I assume the case is not broke? and did you drop it on the output shaft?
You will need to run it to make sure unless you want to pull it apart.

 

It dropped on the pan and it turns out my small budget is bigger than my brains.
the kickdown rod is not to be confused with the shifter rod.