Hello all, my first proper post, was really looking for some help.

I recently purchased a 2000 4.0 XJ, with 30,000 miles on the clock, that is right 30,000 miles. It is the Orvis edition, I believe you can’t get this in the USA and was only available in Europe, where I am based.

My XJ has recently developed a fault with the 4x4 system (Selec-Trac)

If I drive the vehicle in 2wd it works fine.
If I slide the handle back to position 2 4x4 part time it works fine
If I slide the handle to position 3 4x4 full time I do not get the full time light on the dash board, and when I try and go around corners I can hear the wheels scrubbing.
If I slide the handle to position 4 for neutral it works fine.
If I slide the handle to position 5 for low it works fine.
If I then try and get the vehicle back into 2wd I does not want to go in, even if I only take the vehicle into 4x4 full time and then back to 2wd it it will still scrub the tyres when going around corners like it is in position 2, I have tried reversing at speed, reversing and then braking hard, going over speed bump etc and it does not always go back in, eventually it does go back into 2 wd but until it does I cannot go around corners.
I have managed once to get it into 4x4 full time and drive on the road no issues, but I then slide the handle forward to 2wd to save fuel and it started to scrub the wheels like it does in position 2.

Can anyone help me please? I am really desperate as I don’t want to have to scrap the vehicle.

 

Have you checked The fluid within it? kind of works like a transmission. In the a W for if you're low on fluid you won't get a strong reverse and it'll take a while to go back into drive. Therefore if The transfer case is low on fluid this might be a reason why you're not properly getting all gears.

 

Check the fluid first.

Shift like this:

Here's how the factory suggests you shift the transfer case and I've been doing this since these things were new and I worked at the dealership. Quoted from the owner's manual. The suggestions in ITALICS are mine.

"To engage, shift the transfer case lever from 2H to 4H while the vehicle is moving at any legal speed". I let off the gas, throw the lever, and then tap the gas and let off.

4L position: " To engage, slow the vehicle to 2-3 MPH , shift the transmission to Neutral, then shift the transfer lever to the right and pull firmly rearward to 4L".

To shift out of 4L, shift the transmission into neutral with the vehicle stopped, shift the transfer case lever to 2H, then to D if you have an automatic, or into first gear with a manual, and continue on.


Revised 01-31-2014

Make sure your engine and transmission mounts aren't worn.

Here's how to adjust the linkage AFTER verifying everything else first.

 

^What he said^ and after adj. the TC shifter linkage lube it as well.

 

Thank you everyone for your advice, I will everything a go this weekend.

Can anyone advice on the best oil for my transfer case? I believe it Dexron III is best?

I also have discovered a leak from my rear differential, I believe it’s a Dana 35 rear, I have checked on Youtube about how to repair the leek and change the oil but I am still not 100% sure on the best oil to use on the rear differential. I also don’t know if I have a LSD if I do I believe I need a friction modifier?