Rearend power delivery should be smooth. Besides the FWD fuse, loss od RWD has been attributed to either the transfer case or the rear diff. In my case, it was the transfer case.
If your problem is in the transfer case, don't let the dealer talk you into a new tranny unless they can back up their suggestions. My dealer at the time said the transfer case damage was not repairable and would only consider tranny replacement. I paid the diagnostic and disassembly fee, rather unhappily, and had it towed elsewhere for repairs. $700 and 4 years later, I still have AWD, though the tranny is slipping a bit more now.
KuoH
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