Help..... I've just purchased a "99" Tracker 4x4, 5 speed. After years of weeling Jeeps and Broncos,I saw the light and am now a true believer. I do have a problem. the transfer case pops out of 4 high and seems to bind up. Its OK in two wheel and does not seem to make any unusual noises. I've checked the shifter for interference and also checked the gear lube but can't find any obvious problems. Has anyone experienced similar problems? Any advice you can give would be greatly appreciated.........

It is probably the shifter sheet. It is a bushing under the shifter lever that cups it and hods it in place kinda while you shift. Look around and get a brass one so it can't crap out on ya again. Do a search on "shifter sheet" It is simple to replace. You have to remove the dust boots and then tap the ring the holds the shift lever in and twist it out and the lever comes right out. The shifter sheet goes under the ball on the end of the lever if it is anything like my Sammy.

Hey Wilderness......
Thanks for the advice. it did the trick. We also found it was also partly due to driver error! Thanks again!

Is this the same transfer case as an '98 Grand Vitara?

I think I might have the same problem

Are you using 4WD on hard surface?  The reason I ask is that going round bends or even small tyre diameter differences front-to-back will make the transmission bind up, and the excessive torque in the system could throw the TC out of engagement.