I'm pretty sure they have locking center diffs, even in 4-hi. There is no open center diff in the 4-speed equipped G3. The 01-02 XLS was available with the rear LSD for 2-hi, and 4-hi locks the center. 4-lo does what it does. I prefer this over the Limited style, for my driving habits (95% tarmac, 4% deep snow, 1% non-technical offroad.) That may sound strange, some thinking and open 4-hi center for full-time AWD is best for tarmac, but with Mitsu's LSD in the rear and an educated right foot, there's little reason for AWD on pavement. And if the road is too treacherous for 2wd, 4-hi is right there. In when you need it, out when you don't, on you go. Having the Limited's electronic wizardry and all it's sensors in between the cabin and the road is a detriment, even though when it works, it works. But I like the analog feel and performance of the mechanical linkage.
That said, if I were buying a Montero today, I'd buy a 2002 XLS with all NTSB recalls done, clean records, one owner, well maintained with docs. $4000 or less, there should be 2-5 around the country at any time.
