Randy,

Meant to ask before: was your drive shaft (propeller shaft) rotating at all with the car on the lift? Check in Fwd. and Rev.

 

No rotation at all.

 

Sorry for that.

PTU failure is what the manual suggests is the issue.

 

I know this is old but might help someone. When my wife's tires were replaced, the AWD started to function but wanted to bind in turns, after a fluid change it works normally. The only possible issue we could find was the old tires had not worn at exactly the same rates and were a couple of tenths shorter on 2 of them. As soon as the new tires were on and we began to drive the car, the AWD started to function.