Re: 2004 WJ Laredo 4 WD Not Working
Difficult to say what exactly is wrong, but it seems to be in the T-case itself at least. When you say the wheels spin, you probably talk about the rear wheels only, isn´t it? I would first check if the T-case shift lever/cable is not binding somewhere or mis rigged. Then check T-case fluid level and check for any debris in the fluid.
I don´t know how long you have this jeep, but some guys just remove the front propeller shaft when a problem with the shaft joints arrises. Just have a look if its still there.