OK... first, that does sound like what binding is. It is caused when the transfer clutches (READ: center diferential) are locked together. This causes perminant 50/50 torque split. The problem with this is all the wheels are spinning the same speed at the same time. because when you go around a corner, the outer wheels need to spin faster to keep up with the inner wheels, it causes this binding.

The shift flares could be normal. The svx is programmed for very smooth shifts which can be mistaken for slipping. Try unplugging the resistor next to the battery (on the inner fender wall) and see if the 'flares' go away.

I have no idea about the last prob.

Mike