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the hubs allow the front axles and diff to rotate independant to the wheel rotation. whith the hubs "unlocked" the front wheels will spin free. witht the hubs locked, the wheels will be locked to the axle. with the hubs locked and the t-case in 2wd the front driveshaft will be driven by the front wheels not the transfer case. in 4wd the transfer case will supply power to the front driveshaft in turn powering the front wheels. we all hate the aujtomatic hubs (located inside the 5 lug bolt pattern on the front wheels it is a silver soda can looking thing it will have 3 or 5 small bolts around the rim if stock they will say 4x4) because they fail when you need them most. mine failed while i was trying to cross a 14,000 foot mountain pass with 16" of snow on the ground. 2wd will not hack those kind of conditions.
My '82 Bronco has manual hubs (they're the thing in the middle of the front wheels that engages the wheel into the axle, so it will pull when you shift into 4X4). I've never had anything but manual hubs. My son's new '94 has automatic hubs, & now they're higher on the list of things to replace.
I've had more problems with my driver's seat bracket breaking than anything else. The right rear, to be specific, has been replaced & repaired 3-4 times in 12 years...
The power steering pump is the third.
It's always had some kind of oil leak - engine or transfer case.
Oh and just one more thing on this whole "hub" question. The technical term for what we are talking about is "Hub Lock" not just hub. These locks lock the hub to the axle.
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