Towing a 2000 Jeep Wrangler myself. You put the transfer case in Neutral and the gear box weather it is a manual or auto IN GEAR. The Manual trans in High gear. That way if something happens and the transfer case does get put in gear you don't hurt engine. IF you put them in Neutral and the transfer case goes in gear you will tear the trans up due to wearing out the inner bearings on the main shaft. If engine is not turning the trans the oil can't get slung around to lube it(main shaft not turning). On a automatic if transfer case goes in gear either way by the time you get her stopped you be in a mess. Just my two cents worth.