When the electronic transfer is not engaged, the front wheels will freely spin. If the front differential was in fact broken, I do not believe that in or out of 4 wheel would create this same senario. Instead, I would sooner think that if the differential was in fact not working at all, the front wheels would spin regardless if the transfer case was engaged or not, hence making it a full time 2 wheel drive, the same as my 91 Explorer, which has a non-working 4 wheel drive system.