I'd be happy to learn something and be corrected, but my basic understanding of how these early (~pre-2004) x5's work is:

- the transfer case works just like a dumb differential. Constant torque split front to rear (38% / 62%). Just gears, no sensors, no actuators, no clutches, etc.

- the traction control works just like ABS. Detects wheel slip / lockup and adjusts braking accordingly.

For the experts, is that simplification still accurate enough for me to keep believing? I'd gladly throw a switch and be done with the front wheel drive, but am not interested in complicated mods. So I just need to know enough that I can understand how it basically works for driving or diagnosing purposes.

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2001 X5 3.0i, 203k miles, AT, owned since 2014