My 2000 xj sport auto trans wont move in 2wd, 4L or 4H only when I put the transfer case in neutral, thats when drive, reverse, 1-2 and 3 on the shifter works. I checked tranny fluid it wasn't burnt or low. I checked the transfer case, it was bone dry so i filled it with some fluid. It barely drives when the transfer case is in neutral ive gotten up to 35mph and shifts harshly would this be a linkage, sensor issue or do I need the transfer case rebuilt?

 

First thing that comes to mind is if your transfer case linkage is adjusted properly. After you straighten that out, then we can address the tranny issues. Have you checked for codes, especially transmission codes?

 

Do this first. Report back after.

This is on a 242 in a Grand Cherokee but the process is the same for the 231 in the XJ.