[Cam]

If the FWD fuse is placed in the fuse box it will (I believe) ground out the solenoid C and keep it from functioning. You will have no power to the rear wheels. If someone placed it there, then I would say 9 out of 10 times they did not replace the solenoid. Anyone with enough understanding to change the solenoid would also have broken it in and not required the FWD fuse. You can attempt to free up the binding by doing tight figure 8's, yes. But I would first check the rear diff. If it is already toast then you do not want to have it bind anymore.

First things first, REMOVE THAT FUSE, and see what happens. If the rear diff is binding, put it back and have a shop check the condition of the rear differential. If everything checks out, you can try to take it to a parking lot and do some tight figure 8's (like keith said) to attempt and free up the binding. But if someone had the FWD fuse in there, I would say it is probably for a reason.