I have a 1991 Jeep Wrangler YJ with the 2.5L four-cylinder and stock five speed manual transmission. I assume it has the standard NP-231 transfer case.
Although I have successfully flat-towed my YJ (maximum of about 400 miles one-way and then return about a week later), I've recently learned that the NP-231 (at least of this era) does not have a "true" neutral position. Instead, while it does uncouple the transmission from the transfer case, it also couples the front and rear outputs together. If the front axle is engaged this causes gear backlash with the potential to destroy the transfer case. If the Center Axle Disconnect (CAD) on the front axle is disconnected (disengaged?), then the backlash is eliminated.
The problem is that the vacuum operated CAD stays in the last position it was put in. If you are preparing your YJ for flat towing and you start the engine, the moment you shift the transfer case from 2WD to Neutral the vacuum CAD engages the front axle. There you are with the outputs of the transfer case locked together and the front axle live instead of free-wheeling. Leaving you with the potential of blowing up the transfer case.
The standard way to disengage the CAD under normal conditions (i.e. you've been in 4WD and are now ready to resume normal 2WD operation) is to place the transfer case into 2WD and then put the transmission into reverse and back up several feet. This puts the front axle back into free-wheeling mode (assuming everything is working properly), and you can put the transmission into normal gear and drive off.
If you know the CAD is in this state then you can prepare for towing simply by putting the transfer case into neutral without starting the engine (no vacuum). Go ahead and put the transmission into neutral, hook up to your tow vehicle and go. Some people recommend that you leave the transmission in gear while towing. Since you have disconnected the transmission when you put the transfer case in neutral, this should not be necessary. Further, if the transmission is in gear and the transfer case is accidently engaged (by a severe bump maybe?) there will be bad consequences. You don't have to worry about the transfer case lubrication because the rear output (which is engaged) also drives the internal oil pump. As long as the CAD is disengaged you are ready to tow.
Apparently when I've towed my YJ I been fortunate in that a)I typically back in to park, therefore I've left the jeep with the CAD disengaged and b)I normally don't have any reason to start the jeep prior to putting the transfer case into neutral before hooking it up to be towed. Since I didn't understand what I was doing, I could very easily have destroyed my transfer case without knowing why.
Although I am comfortable with this, knowing how things work, there are alternatives I discovered as I researched this issue.
1)Assuming that the CAD is already disengaged, you can just disconnect the vacuum line from the CAD box. You'd be fine to start your engine and move the jeep to the towing vehicle, hook up, put the transfer case and transmission in neutral and go.2)Install and use a Posi-Lock device instead of the vacuum CAD. Since you control the front axle lock by cable, you should know the state it is in.
3)Install and use external locking hubs. Not pleasant to use in foul weather, but again you always know the state of the front axle because you set it.4)Install a transfer case conversion that gives you a true neutral. You'd never have to worry about the state of the front axle when you put the transfer case into neutral then.
5)Finally, of course, you can always tow your jeep on a trailer.Comments and questions are welcome.
Your mileage may vary. Vehicles in mirror are closer than they appear. Cheers, Ed Humphries Atlanta, Georgia