Had to replace the trans and tranverse case the other day. The trans started to have a delay when going from reverse to draive. This has been going on for about a year. Checked fluid and it has never been low. Did not smell burned or looked burned. Was out hunting last month and had to use the 4X4 mode and when my wife started to drive away after the hunt she said she could not get it out of drive. I played with it and it made a loud bang!

Took it to dealer as it sounded bad and made a strange sound on the way home. It acted like it was still in 4X4 and the light was off. Dealer said notyhing was wrong of course. Wife called week later she was at my parent shouse and the liberty would not go into gear. I stopped by and it was like in neautral whenI put it in reverse and drive. Finally I was able to get it to move after shoving it in 4 low and it just dragged the front wheels and was making an awful noise.

Called tow truck and dropped it off at dealer. Needed new trans and it popped a code of pressure problems and fluid ddi smell burned and transverse case gears were in peices.

Libe has 98000 miles mostly highway. No real off roading except to get back in feild to go hunting. Cost to me was $ 4200. Cheap parts. My F250 has 141,000 miles and no tranny or case problems. I guess that is why they call it a super duty. I call the lib a cheapy duty.
Do have a 3 year warrenty or 80,000 miles now on the trans and case.