Here's some more insight, that of which I'm SHOCKED no one else mentioned...
Look on your drivers side visor, flip it down, there should be instructions on what all those 4 HI and 4 full mean, and when it's appropriate to use each of them. Also check your owners manual.
Find a dirt/gravel road or lot and test it out.
Since you have a Cherokee Limited, odds are pretty good you have what is called Selec-Trac 4WD, this allows you to run in 4WD Full Time mode if you'd like on dry pavement.
Shift on the fly is up to 55MPH.
Works great on some jeeps, not so great on others, with wheels spinning unevenly, as mentioned, it might not work so well.
Also depends on how easy it is to pull up that t-case lever. My 87 is nice and smooth, but my 90 requires two hands and some elbow grease, it works properly, lever is just really hard to move.
Teron