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I have had a 4X4 binding problem since I bought my 04 XLS this summer. I mentioned it to the dealer and they said it was a normal part of the AWD system when not in 4X4 HIGH. I said OK at the time. It seems to be getting worse now, and passengers have even commented about it ... like what kind of junk truck is this.
The problem is in slow speed maneuvering, like when entering or exiting a parking space. It's acts like its in 4X4 HIGH rather than 4X4 auto. It binds and clunks pretty badly. Now with the trans recall, and talk of solenoids, and even new transmissions, I'm wondering if I should not accept 'that's standard' for an answer. I;ve already had the rear end replaced and I still have the whine that I had before. Had to have the rotors turned at about 70 miles for warpage, they wouldn't replace them. Now they're starting to vibrate again too at 8K miles.
This is my first new Ford in about 10 years, and I'm beginning to get ****ed.
I had two rearends in mine because the first one didn't fix the whine and the clunk on turns. The one that I have now never whines and never clunks. I am pretty sure your symptoms are caused by the rearend. Mine certainly was.
I actually have 2 problems, first the rear, and second the 4X4 binding in the front. When it binds, it is clearly coming from the front end of mine. It feels just like it's in 4WD HIGH, but it's in 4X4 Auto. I'm hoping they can fix this.