I'm pretty sure that the when in neutral the transfer case is totally disengaged from both the front and the rest of the drivetrain. I have know idea how the auto hubs work on these. Are they vacuum actuated? If so then when the car is turned off then the hubs would be engaged. But what I really don't understand is so what if the hubs are engaged? As long as the transfer case is in neutral. The front axle and driveshaft will rotate but thats not a really big deal.
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