I verified and it is lined up.

**Just broke down.....AGAIN!**
Different problem this time.

I'm cruising 75 on the freeway and i hear a loud screetch noise for about 2 seconds, nothing happens so i wonder if its a noise from one of the closer cars on the freeway. I make it to a store and run in for some stuff then it happened!! I turn my wheels and put it in reverse and i get a few feet and something binds up and stops the truck! i can force it with alot of throttle but know i shouldn't, if i straighten the wheels it lets loose and i can accelerate. it quickly made the screetch again pulling out of the parking lot and i got it home where i played with it in the driveway and whenever the wheels are turned if binds/locks up in forward or reverse!

could this be a transfer case issue? how about front diff? how can i test this?

Just skimmed the entire thread to check but don't see how long you've had this truck and how many miles you've put on it since you bought it. Any idea how old/new your front hubs are? A known issue with the H2. I would look at those, put the front on jack stands and check all the suspension and steering. If you've already done all this in the recent past it's probably still where I would start. Simple stuff first.

Are you talking steering wheel hard over when it locks up, or just normal turning? Again, seems like a big clue here.

Sounds like transfer case is in 4hi lock

Sounds like in in 4 lock. Toggle the switch and see if you can get back to normal. Mine will act this this too (hard to move while turning) if I am an hard pavement.

Tim

Had it since 2011 and put approx 100k to date mostly highway miles.
I have never replaced the front hubs so who knows??
I turn normally without cranking.

Ill have to get it up on some jacks this week and have a look see and report.

I had suspected this as well so i put it in neutral and went from 4hi to 4hi lock without any noise at all but the usual clunk from 4hi lock to 4lo.
Does it sound possible my shift fork is broken?

110K your hubs are about due. Jack the front end up and see if you get any vertical movement out of the wheel. They are pretty easy to replace. I doubt any of that is related to your surging issues but you never know.

Tim

Is it possible that my transfer case is causing the surging?

On further inspection i found out that my drivers side axle seal (area) is leaking oil all over the place and my guess would be that it ran out and dried up.

I still haven't jacked it up or tested anything yet but i have changed the axle seal twice already! and the side bearing seal once and it still leaks apparently!

My questions are:
Do i need to rebuild the front differential? (bearings & seals)
what could cause my seal to leak over and over after replacement? (bad axle?)

I have rebuilt a rear differential and transfer case on an old bronco before so im not clueless but some helpful advice would be appreciated. what kit to order?