That was most likely the TC (Traction Control) part of the elctronic package. If you are in 4LO, the computer modifies the ESP/ROM program to basically negate its effects. The TC works offroad and acts like a decent LSD (Limited Slip Diff)

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Founder of L.O.S.T.
2006 CRD Sport
Mods: GDE Hot Tune w/ 364#@2000rpm/Air Box /3" Str8 Exhaust/ASFIR Alum Skids/245-75R-16 Cooper STT PRO/OME LIFT w/Clevis & 4 Spring Isos/AirTabs/Rigid 10" S2 LED/4xGuard Ctr Matrix Bumper
Drag Strip:Reac=.1078_60ft=2.224_1/8=10.39@64.8mph_1/4+16.46@80.8mph