Very bizarre Jeep Cherokee steering/movement issue w/ 4WD?

rydogs

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My 1998 Jeep Cherokee which is a stud in all other aspects has one odd issue. Particularly in the winter, after I engage 4WD (part or full time) my car acts up. At low speeds, if you cut the wheels, the car feels like it will not move. Especially in reverse, it sometimes won't move at all if the wheels are cut. It feels like its tugging. And at high speed, it makes a loud noise, as if a wheel bearing is old. Take it out of 4WD and problem solved! What could this be? Hubs?
 
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