1977 power wagon doge What does it do when you switch the 4 wheel drive shifter to neutral?

It puts the transfer case into neutral and since all power is routed through the transfer case then you go nowhere. This is the way i remember it on mine, push forward from neutral and you have 4whi then 4wlo, pull down from neutral and you have 2wlo then 2whi. it may not be the same on yours but thats pretty universal for 4wd vehicles.