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There is an extra shift lever that controls the transfer case. Put it in 2H (if you want to drive with regular rear-wheel drive) or neutral (if you don't want to engage any wheels at all). On most CJ7's, you should also unlock the hubs. Outside the vehicle, in the center of each front wheel, there will be a tab to rotate. That disengages the wheels from the front drive axles, so you won't be rotating all those parts in the front drive system as you drive in 2WD. Of course, CJ7's being very old now, many or most have been heavily customized, so you really need to know the specific vehicle.

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