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Auto locking hubs:
When you put your transfer case into 4x4 mode, the front axles begin to turn. This turning action spins the inner gear of the hub and 'engages' it against the outer ring, thereby connecting the axle to the wheel. When you take the car out of 4x4, you must travel backwards about 4'. This reverses the outer ring of the hub back off the inner ring, and thus, it is disconnected again.
Manual hub:
In locked mode...the wheels will always turn with the axle. If the vehicle is in 2wd mode, the wheels will actually continuously turn the axles, instead of the axles turning the wheels. In 4x4 mode, there is power to the front axles, so the wheels turn.
The major benefit to manual hubs is this: If you are stuck in a muddy rut, and need to 'rock' the vehicle back and forth, the auto hubs will disengage and try to re-engage every time you make a movement (back->forth and vise versa). The manual hubs are always locked when engaged, so you have 4x4 no matter what.
HTH, and not too confusing!
Steve
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