I recently recieved an 04 WJ Limited around Christmas time, complete with a 4.7L V8 and 4x4. It has the Quadra Drive 4x4 system, which I love, but I've also found a few quirks that come along with it. my jeep has 72k miles on it, and the previous owner used it as a tow-behind vehicle for an RV, so some of those miles could even be towing miles (not sure how the miles are tracked in neutral, i may be wrong.) from what i understand, quadra drive sends torque to the front axle whenever rear axle slippage is detected. from reading around on the internet, Vari-Lok differentials sense wheel speed difference, as opposed to torque difference. my problem with my WJ is that whenever i am turning rather sharply and at a slow speed, there is a pretty loud and annoying noise that sounds like gears grinding and my tires skidding and sliding. as far as i can tell, this only happens on roads, concrete, pavement, etc. and not in fields or grass. the only thing i can come up with is the different wheel speed on a turn that makes my 4x4 engage and my differentials locking, but i may be wrong. it sounds and feels like i'm putting extra wear and tear on my tires and everything BTW i've made no modifications to my WJ.
thanks for the help!

 

this problem is also recurring... it seems to go away for a day or two, then it'll come back.

 

change the differential fluid in the front and rear differentials and add limited slip additive. I did it with mine and the noises went away

 

This explains the Quarda-Drive system in the WJ: >http://www.wjjeeps.com/tcases.htm