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Update, removed actuator and tested with a vacuum pump. tested good. opened up front cover and found spider gear blown to bits. I have 3.55 rears front and back, can I put a 3.9 rear in the front
Ouch... My truck was exhibiting similar symptoms. I plugged the vacuum line going to the t-case, and blocked the disconnect fork from moving over to the disconnected position. Now my 4x4 works beautifully, and my front driveline spins all the time, just like a later model.
My old Cherokee had the same problem. In both cases, it was just a bad diaphragm.