Transfer Case Shifting Problem

A few months ago, I had a SYE installed in my 92 XJ with the NP231.

Soon after that(less than 50 miles), I swapped the axle for a locked 8.25.

Once driving, I realized the rear locker wasn't disengaging, therefore acting like a welded rear, causing... annoying handling characteristics.

I never really thought much about the fact that my steering wheel would pulse and my tires would chirp when turning. I just figured the steering box is shot and the rear locker is making the tires chirp.

Upon driving in some slimey situation, I realized that, when "in 2hi", the front tires have power, along with in 4hi. The t-case shifts into 4hi, Neutral, and 4lo without problems.

The issue is that, when in 2hi, all 4 tires are getting power.

Any ideas as to why this is?

I would say that when the SYE was done they put the selector ring up-side-down. I've done it before but I checked to make sure everything worked right before it was back in the jeep, then had to tear back into it and flip over the ring. Or you could be missing the spring.