I've decided that until I have the money to upgrade my Libby for the trail I'll use it as an occasional tow rig (I have a 95YJ too). In preparing my Libby to tow a vehicle trailer I've learned that there are some basics.

=don't exceed your vehicle's towing capacity (a no brainer)
=use a proper weight distributing hitch (it will greatly improve handling & safety)
=typically a vehicle trailer will require trailer brakes, a brake controller in the tow vehicle or hydraulic brakes integrated in the trailer
=proper tires on the tow vehicle, I never knew it but if you do any appreciable amount of towing you need more than "standard load" tires but something like eight ply tires. Standard load tires seem to have too much "roll".
=if you don't have a factory installed towing package you should install a transmission cooler and if your transmission has an "overdrive" option turn it off while towing
=properly secure your load on the trailer (another no brainer) and check the straps/chains often. If securing a vehicle tie down the axles not the vehicle's tow points
=before leaving on a trip inspect your tow rig & trailer. Nothing's worse than breaking down on the highway on your way to a trail and trying to fix it on the side of the highway.

Please understand that I am in no way an experienced tow driver. I'm just putting these points out there for discussion.

Myself, I'm going to begin keeping my eye open for a used 2WD diesel pickup for a tow rig so I can put my Libby on the trails sooner.

I have an '03 liberty limited 2wd without a tow package. I need to tow this setup (I hope I posted this pic correctly). Problem is, it blows my fuse that controls my rear lights sometimes. Can a slightly larger fuse solve this without frying my rig or do I have to go the Jeep tow package route for big $$'s?
Anyone with experience with this problem could help me out greatly. Thanks

You probably have a short in the trailer wiring. The extra load of the trailer lights shouldn't be enough to blow fuses. Oh, and lastly don't think you can fix your problem by putting a bigger fuse in. You'll only burn up all your wiring.