I'll go ahead and answer the question about locking hubs.
The Montero have solid front hubs (can't remember the term for these), basically a flange bolted to the hub with a splined hole in the center that the front axle goes through. The front axles splines engage the flange, powering the front wheels. The problem is that you can't disconnect it. That means the entire front drive assembly is ALWAYS turning, even in 2wd. The CVs, the diff, everything. That causes a lot of extra drag on the vehicle. The upside is your never have to get out of your vehicle to engage 4wd, and they are reliable. It is literally just a solid piece of steel, bolted to the hub.
A manual locking hub is useful because you can UNLOCK it. When locked, it acts just like the factory drive flange, but when unlocked, it allows the front wheels to freewheel, and the axles, cv's, diff, etc, to remain still.
If the truck doesn't have to move all the extra parts, it should get better gas mileage. I've heard somewhere between 1-3mpg difference. It also means less wear on the cv's and diff, especially helpful on a lifted truck, since that cause more stress on the cv's. The downside of the locking hubs is that you have to get out and lock them before you can use 4wd. Also, they occasionally fail. My friend had a superwinch hub explode on his trooper, but he was being stupid, trying 4 rated trail in a nearly stock trooper. 33" front tire spinning in the air llike crazy and suddenly getting traction is tough on things. He broke more than just the hub.
Im not sure if that was helpful or not. Hopefully it wasn't too confusing. If it wasn't 3am, I'd go take photos of my hubs to show the difference.