4matic- 'binding up'- no codes

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Jul 1, 2006 | 04:07 PM
  #1  
Recently acquired 91 300TE 4matic with 91K miles. Rebuilt MB transfer case @ 80K miles. When making U-turns or small radius turns, it feels like front or rear is 'binding' up... like right and left side are not turning independently as they should. Also, when accelerating or just before coming to a stop under braking there is a series of subtle jerks coming from drivetrain.
No warning lites are illuminated on the dash and NO codes were pulled.
Also, when the lever is put in 'test' mode, car drives smoothly. All the issues go away. All fluids in trans, transfer case, and hydraulic were recently replaced and are at proper levels. No leaks.
Is this a sensor problem or something mechanical in the differentials?
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