there are quite a few threads about it. Job takes a couple of hours to do but is not that hard. The hardest part on the D1 is reattaching the hand brake cable because you have to remove the centre console.
I had a similiar problem with mine. You can read about the fix here
subtle Disco 1
there is also this
http://www.aulro.com/afvb/common-thr...diff-lock.html
and this
D1 Transfer lever stuck
happy reading


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