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I have read somewhere that the early "gen 2" 4-matics had some issues in the ML, primarily with transfer case units.
Other than that, which seems uncommon, they later 1998- 4-matic units are a VAST improvement over the early ones. They're not as sophisticated, which is a godsend. Some people swear by the early 4-matics, but every tech I know uses words like "run away" when you talk about the earlier version 4-matics.
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