Its a 2001 x5 so there is no tc actuator. No xdrive . Just open transfer case.they have the torque on demand transfer cases in the 04 to 06 x5. No worries on that front for me. The electronics only come into play when wheels start to slip. So in theory you can run a dana 300 off the back of the transmission and the car doesnt know the difference. So you can drive in 2wd and once the wheels start to spin and the fronts do not, the traction control will cut back the throttle (unless you have dsc off) and then apply braking to the wheels that slip. There are no electronics in the transfer case on the 01 x5 case. Just 1 to 1 open . When you lock in 4 hi or low, the traction control doesnt know either since on front and one rear will always be driven. I drive off road with dsc off. It doesnt cut back throttle but still applies the brake to the slipping wheel (automatic differential braking). I have installed an xdrive tod transfer case in this x5 and locked the tc motor to full lock 50/50 and it did not have any traction issues, so I have tested the locked transfer case theory and it works well. Just no low gearing. Thats why I am retrofitting a dana 300 and a doubler strongbox to get that. I think the big problem will be breaking CV axles.