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That would be the idea. The light reminds you are in 4x4
3
P225/70r15
235/70/r16
behind the glove box
9mm Hexbit Allen Socket. Hard to find. Sears usually carries, you can order online
The Escape is offered in both 2 and 4 wheel drive.
I don't believe so, I have never seen it. I do know that the 2010 f-150 does.
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It's your vehicle, and there's certainly nothing prohibitive to you doing this. However, if you don't have a transfer case which can be placed into a neutral position, then you would want to disconnect the driveshafts, unless you felt like replacing a transmission.
Should be Ok, check towing capacity against GVW to be sure, stay well below the limit. Also check with the dealer if the Escape has an automatic transmission, damage can result from towing if not done properly.
The 2005 Ford Escape is more all wheel drive than the conventional locking hub 4x4. However, if it says 4x4 right on the dashboard, as it will do if so equipped, they are most certianly refering to the drive train and not the number of doors.