First off are the Discoverys all time 4X4?
I replaced the 4x4 diff. Shifter....before I did I was almost certain it was in neutral which I assumed would then only give me 2wd....after replacing it anytime I put it in neutral I get no gears on the transmission, reverse, drive, park, etc......I was told that the transfer case stays in 4WH all the time and Neutral was only used for towing....is this right? Am I just mistaken in thinking it was in neutral and it was actually in 4high the whole time or did I hook something up wrong? Any advice is greatly appreciated!!

 

Huh? 2wd in neutral? You have a few things to learn about your truck.

Discovery's are always in 4 wheel drive. You can select 4 high, 4 low and neutral. The transfer case is normally open in high range and low range, meaning that all of the power can go to the front axle or the rear axle. In a D1, you can also lock the transfer case which will transfer power to both axles. In a D2, you may or may not have a transfer case that can be locked depending on the year. The early ones had the pieces in the transfer case but no linkage. Then they installed transfer cases without the locking mechanism. Then in '04, they installed the mechanism and the linkage. Land Rover relied on the traction control to handle low traction situations for the D2, but decided on the '04 that maybe having the ability to lock the t-case made sense after all.

As a result of having full time 4 wheel drive, your front driveshaft is always spinning. From the factory, they don't have provisions for greasing everything so they are prone to failure. This may result in a broken transmission case.

 

That answers my question. Just bought my Rover a few months ago so yah I do have a lot to learn about it. That's why I am on here......Thanks!