I just bought a 2001 Land Rover discovery 2 sd and I wanted to ask if the 4x4 suppose to stay on all the time because when it is on neutral it beeps and shows gears with an x on the dash
please help

 

The Discovery is a AWD vehicle. The transfer case is high/low, but there is no option for 2WD. Putting the H/L shifter in neutral puts the truck in neutral.

 

Sounds like someone may have installed CDL linkage and the ECM is recognizing the shifter being in locked position. Show us a picture of the Hi-Lo shifter, there is a CDL locking one and the regular one that came from the factory on a 01.