Kevin -
Walk out to almost any 4WD NV Part Time gear set.
The lever has a primary operating position, 2H. This is not called lock, but it is. In this position, the transmission output is transmitted through the transfer case without any rotational translation, ie, 1:1, to the rear end drive shaft only.
Pull the lever back and a couple of things happen causing what is essentially a chain to connect a short 'stub' shaft to the front drive axle. This is a direct locked connection between the front and rear shafts, hence 4 High Locked;
Pull the lever further and a jack shaft disconnects from the rear output shaft, this is neutral.
Pull further, and on some, over then further, and a second jack shaft connects to the first, then a small spline engages the original shaft. The first changes rotation and reduces the gearing, usuall 2. 71:1, and the second reverses rotation again and transfers power to the chain and rear output shaft.
Again there is no differential, torque is split equally to the front and rear, hence 4WD Low AND Locked.
The problem is, when driving on hard surfaces, the front and rear wheels being slightly different diameters, rotate at different speeds. This causes 'binding' between the front and rear that must be released by slipping on the traction surface. This is why you can run 4WD only on soft surfaces.
This is why it is sometimes difficult to pull out of 4WD when you run off the dirt onto pavement before shifting to 2WD. This is more prevelent on heavy trucks like the CTD where the front may have twice the weight on it and the tires have a smaller diameter because of it.
In older 'Full Time" 4WD systems, the jackshaft and chain is interupted with a differential. Some manufacturers use a clutch pack, some used spider gears. This is like the old QuadraTrak which required a friction modifier because of the clutch pack.
On these, a position called Lock is available to essentially lock across the differential giving Part Time 4WD, the front and rear axles are locked together. If the rear axle turns, the front MUST turn too. In Full Time 4WD systems, the rear can break free after a certain amount of torque difference between the front and rear.
This is why your old Power Wagon needed both a Hub Set and chain / spool for the transfer case to convert to Part Time 4WD.
Other systems like the ford use a part time 4WD that engages when a difference in wheel speed, sensed by a 'tone' wheel on each axle, is detected. This can be caused by going up a hill with under inflated tires, even when the traction is good. Causing the Ford to go into and out of 4WD, or AWD as they call it.
The NV271/3 is a Part Time 4WD system, no clutch, no differential, always locked in any 4WD position. Selecting 4WD Low Locks the Front to the rear without any chance for an Unlocked position, and the lack of hubs or an axle disconnector means 4WD is 4WD, period.
The Spec reads, " 2 WD High; 4WD High, Locked; Neutral; 4WD Low, Locked;
These are 4 positions, there is no unlocked position, all are locked. This isn't a RamCharger.
If I had more time, I would explain further.
I hope I've explained correctly, my daddy always said, "Its better to keep your mouth shut and let all believe you are an idiot, than to speak up and remove all doudbt!"
Just havin' Fun!