1999 Disco 2 td54WD delima 2WD option
 

I have a 1999 td5 that has a transfer case problem. Since I live in the boonies in Panama, Getting a replacement TC in not easy or inexpensive. Is there any way to disconnect the transfer case and run in 2WD only? In the 4 1/2 years, I have owned it, only 2 times I have ever needed the 4WD.

Lock the transfer case and remove one or other of the driveshafts?
I don't know how that will hold up to higher speeds though.

Your D2 is AWD with a Hi/Lo Transfer Case. So you've actually been using 4WD all the time. You can "try" to reach up and lock the TC, then disconnect the shaft on the side of the TC that's acting up, but that honestly is just a trail fix meant to get you back out of the boonies to where it can be repaired properly. I wouldn't drive like that for very long especially with a TC that's already acting up.

I don't understand how driving with a locked t -case could damage it with only one shaft connected. You can't shock the case by taking turns because there's no speed differentiation between front and rear.

I'd think that an AWD TC is designed to have close to even load distribution 90% of the time or more, so locking it out and having load distributed completely unevenly could definitely shorten it's lifespan. I'd think that going a couple hundred miles like that wouldn't cause catastrophic damage.

Yes it's designed for the load to be split 50/50 for the most part. CDL is an option for that reason to use while off road. If you were to drive around with a locked TC all the time it would not hold up very well.

The TC in a LR is not a 2WD/N/4Hi/4Lo setup so technically it is not designed to handle 2WD all the time. Like I said for emergency use sure it'll work, but I don't see it lasting nearly as long as the AWD application.

My 2000 is rear wheel drive-only for the last 4 years in locked mode, with no front driveshaft nor front axles. Never needed 4WD. Normal driving to speed limits. Zero problems.
I would not even be afraid of swapping the LR transmission with a wreck yard BMW/Mercedes ZF and hook it directly to the rear differential if my transfer case or transmission give up some day, dumping them forever.