Hi there!
This my first post here and am in need of your help.
When I shift the tcase, on my 2000, into High or Low lock everythingworks perfectly. The problem comes when shifting back into 4AUTO. Once I shift it back into full time 4 the locker/limited slip, whatever it is in the rear axle does, not dissengage. It just stays locked up. To get it done, I wentaround a curp with the front tire and just hit the back on it. It seemed to work, and I haven't switched it into LOCK again since then.

Why is it staying locked/what can i do about it?

 

its not in your rear. lol. its in the t-case try backing up about 10-20 after putting it into 4auto. or just putting it in reverse and then back to drive might help

 

It's not the T-case 01dakota440. It is the axel bind.......LOL

Basic front to rear axel bind. Here is a link to a section I did on this very issue. It is not the same T-case but the same principal applies.

Transfer Case Update! NV 242 HD

 

wow hydra you gave a link telling him to do what i already told him.

 

Not exactly smarty pants!
This is not true. It is in the rear and in the front drivelines. This causes the bind. Not the case!

Yes you told him to back up but you didn't address "why the problem occurs" and "how to fix it".
You make it sound like it is a bad T-case. This is purely not the problem. Just reversing will not disengage the bind. The diff's need to un-wined the driveline. To do this simply turn the wheels one way and then the other way in reverse and after unlocking the T-case. This is what will un-wind the drivelines and un-wined the axel bind thus alowing the T-case to disengage.