Chillsworld, those Mountaineers and Explorers (especially with the 302) are great quality vehicles. I had a '96 4.0 OHV 2wd 5speed from FL, one of my favorites vehicles I've owned, and changed my mind on Ford. I got up to 24mpg with it. I just told a friend yesterday to let me know if he sells his daughters AWD Mountaineer.
On the tires, you could try a 235/85-16 in D or E load range, they are narrow but 32" tall and can be run at high psi, up to 85psi for E.
On the transfer case, I believe that a 4x4 tcase will still have the front axle turning, just not the driveshaft, so not much savings IMO over AWD
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'02 E-350 7.3 Diesel (Work Van)
'91.5 Cummins 4x4 (Old Blue)
'00 Jetta TDI 5spd
'22 Tundra TRD OR
'04 RX330
'05 Tacoma 4x4
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