There's absolutely no question that the transfer case in my '97 F-250HD stays in 4WD after the lever is in 2WD and the "4WD" light is out. This morning I shifted into 2WD part-way through a slow speed turn (steering wheel at full lock). The truck was crow-hopping slightly (on packed snow) before I shifted into 2WD and the crow-hopping didn't change at all when I shifted. I straightened out and when I started the next turn there was no crow-hopping. As I said, I haven't had a newer transfer apart (I think mine is a 44-07), so I can't say for sure that there is a spring in it to allow the shifter to go into 2WD right away and then to let the transfer case shift after it's unloaded. But if there isn't one in the transfer case, then it must be in the shifter or in the linkage, because that's what it does.

First, hubs not engaging and unloading the driveline by unlocking the hubs are two different things..

On the not engaging, the truck does not need to move for the hub to engage. Only the front axle needs to turn, and it will do that (unless something else is broken in the drivetrain, and then the hub doesn't matter anyway). If the hub won't lock with the axle turning (whether the truck is moving or not), that's a hub problem. I didn't have this generation of automatic hubs for very long (I replaced them with manual hubs soon after I bought that truck) so I can't speak to their reliability. A lot of people say they're junk, a lot of people use them for a long time. if it doesn't engage, maybe it's broken, or maybe it's just gunked up (possibly from over-zealous greasing). But it's not because the truck won't move.

When I needed to unlock my hubs to get the driveline to unload I got out and twisted the dial (I didn't have auto hubs then, when I talked about that above it was while addressing the transfer case question). But the same principal holds true with auto hubs, you just need to do what it takes to unlock them - back up a couple of feet. Auto hubs disengage every time you reverse direction, so even if the driveline is bound up (or even if you are still in 4WD) the hub will disengage. This is actually even more reliable than a manual hub (the disengaging when the driveline is bound up), because a manual hub is spring-loaded so it will stay engaged until the driveline unloads too. But in my '95 F-150 the hubs seemed to disengage more easily. Even the crow-hopping will unload the driveline briefly. It doesn't seem to be enough to let the transfer case unload, but it always seemed that a hub would disengaged by the first hop, and once one thing is disengaged the whole system unloads and everything can release.

 

My 2 cents,I threw the auto hubs away,put manuals on,easer on drive line.and it only takes a second to use,I have a f250hd,7.5,e40d.manual t.case,good luck

 

Hmm. I wish I still had my OBS so I could check this out personally. I'm interested now LOL. I don't ever remember it being in 4x4 after shifting to 2H but that could just be my CRAFT (Can't Remember A F****** Thing) acting up.