I have a 2007 Tahoe LTZ 4x4 and have noticed that when I have it in 4x4 mode
and I turn the wheel all the way to the left or right (like makiing a sharp u-turn)
it seems to bind up and the car won't move even when you give it more gas...
I't happens always... it's not sporatic...

I told the dealer about it and they said that it is supposed to do that on streets
but wouldn't do it on dirt or ice..

That's B.S. cuz I tried it on icy roads and dirt and does the same thing...

Anyone else notice this problem....

 

That is how it's supposed to work. It's when you have it in 4WD and it does not bind up on sharp turns that you have a problem. Every 4wd I've had was like that & when my Durango 4wd broke that's how I first recognized it was out.

 

Try not to make real sharp turns with 4WD engaged. You better be on dirt or snow if you're going to do it because it's very stressful to the drive train. In 4WD, the axles will lock so both left & right wheels turn at the same speed. This can't happen in a turn. The inside wheel is turning slower than the outside. Thus, the inside wheel must slip.

 

We had a thread not too long about this also. Using 4wd in these turns can damage it. When you have it in 4wd the front differential is locked up engaging the front wheels.Both frontwheels then turn at the same rate. When you turn, the outer wheel goes faster than the slower. Since your 4wd is engaged, the differential is not allowing this. It wants both wheels to turn at the same speed thus the dragging and skipping.

It's working as designed, take it out of 4wd.

 

Thanks for the explanation....
Now I get it....

 

If the roads are icy or it is snowing then put it in AUTO 4x4. This will enable the 4x4 toengage if there is loss of traction. Never drive in fully engaged 4WD as others explained above.

The only time to used full 4x4 is if you are actually stuck in the mud or slid off the highway.

My 03 Z71 4x4 was the same way. I'd fully engage 4x4 on icy roads and you could hear/feel it binding. On another forum I was told to use AUTO instead.
So it is the same for our LTZ 4x4s.