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This must be the newbie reply thread

As an owner of a 96 XJ I too experienced that very same condition. This is the classic driveline slip yoke bind problem. Try removing your driveshaft and lubing the splines in your slipyoke with a good anti-seize compound or better yet, get the GM special lubricant with a high PTFE content. I would try this before spending any money on parts.
 
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