Is there anyway you can get your money back or reverse the sale? Did you hear some chirping noises when you turned sharply ? and did the steering wheel resist you as you turned while you drove in on pavement?
Transfercases usually come in two types, full time 4x4 and part time 4x4.
The Land Rover you have is a full time 4x4. This means you are in four wheel drive all the time. In non dif lock mode power is differentiated between front and rear driveshafts delivering differentiated torque to both front and rear axle differentials, the axle differentials then distribute torque to the left or right tire of that axle.. In dif lock position the only differential is in the axles, both driveshafts turn at the same rate with no differentiation. Think of it as positraction in the transfercase. Under no circumstances should this full time unit be driven on a paved surface in 4x4 lock.
The reason for differentials......... Imagine your friend holding a rope, and he holds this rope and turns around in a circle ie spinning. This rope he holds is 20 feet long. you hold onto the rope 5 feet from the center at a walking speed. Your second friend friend of yours grabs onto the rope 5 feet from you, 10 from center, and is at a jogging speed to keep up. Your third friend grabs onto the rope at fifteen feet from center and is at a full run. And your 4th friend is on a jet scooter trying to grab onto the end of the 20 foot rope. in other words, going around in a circle, the farther you are from center the more ground you cover, and the higher the rate of speed in time.
So as your vehicle turns a corner something has to let the inside wheels turn slower than the outer wheels, yet still provide approximately equal torque to both wheels traveling at different speeds...... DIFFERENTIALS.
Your vehicle has 3 of these. one in the front axle, one in the rear axle, and one in the transfercase, (with the exception of positraction or limited slip units). The one in the transfercase has two settings,
differentiated = ( non lock) and non differentiated = ( dif lock). The purpose of this unit is to provide exta traction by means of supplying even torque to both axles at all times without differentiation for more traction off road only and lets tire slippage in dirt compensate for the transfercase differential loss in dif lock mode. You locked it out of a differentiating mode.
At this point you need to drain the transfercase fluids and check for metal glitter and debris. This also has to be done in both front and rear axles. Also you may be replaceing many, and maybe all universal joints, Including the front double cardian one and the ones at the wheels. This is very strenuous on many items, shaft splines, spyder gears, bearings, etc. etc. etc. Everything being in such a bind is probably why it doesn't shift back into non dif lock mode. the cable probably needs adjustment or something has worn badly
which is probably the least of this vehicles problems.
Depending on how far it was driven on pavement will determine how much damage is done. And unfortunanely if there's alot of debris, nothing but a healthy bank account can help you here. I would try to get in touch with the person who sold it to you and try to work something out.
If all else fails and he won't work with you try getting your parts through
brittishpacific.com
or
atlanticbritish.com
I wish you the best of luck here and the people here on this forum are excellent for help especially joey.