[Casey]

Correct me if I am wrong but in order to support 4hi (non-locked) operation there is a center differential in the transfer case which I believe is a limited slip torque biasing type. My definition of all wheel drive is one which has a center diff which allows on-road manuverability (such as subaru, mitsubishi, etc) and 4 wheel drive is one which has a locked center which provides 50/50 torque split and identical speeds to front and rear driveshafts (95% of 4wd applications on the market). In 4hi-lock operation is basically e-lock for the center differential.

I know in the eagle talon I own, the center differential is a viscous coupler which allows 50/50 torque split and differential speeds on the front and rear output shafts. However if front to rear differential speed to too high over an extended period of time, the fliud in the coupler will overheat and ruin the diff. The same is true for a clutch type limited slip differential. If you were to run different size rear tires, the clutch packs would always be slipping and burn up in short order.

Now I believe the H3 has true open front and rear diffs, and a torque biasing center type. Open diffs would not be a problem but its the center I would worry about.