Auto lokkars are fine in the front and back of an XJ. you wont be able to use 4wd on the road though, as the front diff will be locked, shouldnt be a problem though, i assume your not daft enough to use 4wd on road??
With a lokkar in the rear you will have heaps of traction for most circumstances anyway.
Personally, i would not have a auto lokkar in the front, as it is a pain to steer with when you are off road.
One in the rear, and a selectable front locker is the best option, if not that, then a lokkar in the rear and an open front centre.
Sway bar disco's will help keep the front diff wheels on the ground and greatly help steerage and traction, and in most situations will be a more than suitable substitute for a front diff lock.
Auto's are great if you wheel a lot. failing that, just re-clutch and re-shim your LSD rear D35, that is usually fine for all but the most hardcore situations.
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