actuallly when flat towing u put the t-case in nuetral and the tranny goes in second to keep the out put bearing form spinng on the tranny because it want get oil and will burn up. i recomend if u flat tow to disconect ur drive line if u r going more than 100 mile. it only takes a few minutes and then there is nothing to worry about. plus u can forget all what in nuetral and what gear. by the way it does not matter what gear u put it in i actually us 4th incase the t-case happens to lock/slides into gear the rear tires don't lock up and the sami goes all over the road possibley causing a collision.