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That's a pretty common problem on these trucks. Seems that it is caused due to dirt and grime that builds up in the front end components when they are not used much.
After using 4x4 high frequently this past winter, my squeaking eventually went away on it's own. Some people on these boards have said that not using the 4x4 system frequently enough is the main cause of failures. I almost would have to agree with them...it makes sense.
I had some front end squeaking start up on me about a year ago. Only in 4WD did it happen. I was concerned because I had heard of some cases where squeaking was a first indication of hub failure. So I looked into new front hubs and saw how expensive they were. Then I considered changing out the hubs to manual, but I found out I couldn't do that because of the way the 4 wheel drive system is designed for '98 Rangers.
So, deciding I had nothing to lose, I took off the front tires and gave everything a good spray with brake cleaner and compressed air. Turned the wheels front and backward, and just tried to blow any dirt or grime out of there. The next time I used 4 wheel drive, I was disappointed because I still heard the squeaking, but it sounded a little different that time. Then, about a week later, I used 4 wheel drive again and did not hear anything! That was about a year ago and I have not heard a peep since. I used 4WD during the fall and a lot this past winter with no problems whatsover and no sounds coming from the front end. I can't even say that it was the cleaning of the front end that did it. Probably some of that and some of what WXboy said, that you have to use it (4WD) on a regular basis (but only on slick surfaces, of course) to keep everything humming along properly.
We all know the feeling. My 98 does the exact same thing. However, my case is a little bit different. Doesn't do it usually IN 4x4, but it does it after I shift into 2wd. I'm assuming the hubs sometimes do not disengage and that's why it does it. It stops after a mile or so of driving. Recently, after I use 4x4, I stop the truck and wait for 15-20 seconds, and that seems to ensure that they're disengaged. Last summer there was a period of 3-4 days that it made the noise, and I hadn't even used 4x4 anytime around then, and I realize now that my hubs must have been engaged for that whole period.
Anyway, I've been to a couple shops and dealerships, and everybody says not to mess with it because it's more trouble than it's worth because it goes away. My stepdad's 98 Explorer is AWD and made the same noise, and they fixed it under warranty, but his made the noise all the time. They didn't seem interested in fixing mine under my full aftermarket warranty, oh well. Just another thing to live with. In the meantime, try to use the 4x4 more often and see if it helps...