Like lfhoward said the boot is toast. Like I mentioned above the end can be replaced. Go here:
http://www.driveshaftparts.com/EZLiberty wrote:
One thing I'm not sure about, when the TC is in 2wd and the vehicle is parked, if I try to turn the front driveshaft is it supposed to be tight or turn? I only know fords the NP205 for example, will allow the front driveshaft to turn freely when on 2wd but this jeep TC doesn't allow me to turn it freely when in 2wd and the vehicle parked, does that make sense?
Yes this does makes sense. Not super sure about the NP205 you mentioned but maybe the Fords in question had manual or automatic locking hubs. My 98 Ranger had vacuum actuated hubs so you could unlock the hubs and the front "axles" and driveshaft would be free if in 2wd. The KJ has permanently locked hubs so everything is turning all the time. When you shift the Tcase to 2wd you aren't putting power to the front but it all still rotates.