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Yes it's the transfer case that will pop out of low range sometimes. If I hold the lever back and put the jeep in reverse and back into forward it will usually lock in and stay. My concern is, if it's not engaged properly then gears are not seated correctly which will lead to premature gear...

Thanks to all for your help I've been contemplating pull the body lift out. Sounds like it may be the best thing to do.

Hey thanks I found a drop bracket at Extreme Terrain for $16.99 I am going to try

I bought a '99 with a 2.5" suspension lift and a 3" body lift. Is there a kit I can get to correct the linkage geometry so it will stay in gear?